The holiday season in the U.S. is painting a tale of two wallets. While shoppers with incomes over $100,000 are ready to splurge 🎁, those earning less are feeling the pinch of rising prices on essentials like groceries and childcare.
Chris Peterson, CEO of Newell Brands—the company behind Sharpie pens, Graco strollers, and Oster kitchen appliances—noticed this split. \"We started to notice this trend where there was a real bifurcation in the market between the 50,000 dollars-and-below consumer in the U.S. market and the 100,000 dollars-and-above consumer,\" he told The Wall Street Journal.
In a country where the average individual makes $65,470 a year, and the median wage sits at $48,060 according to the U.S. Bureau of Labor Statistics 📊, this divide is hitting home for many.
Peterson explained that high-end products are flying off the shelves—think blenders over $100—while budget-friendly options under $20 are being left behind. Newell Brands is now focusing on enhancing premium offerings to cater to those willing to spend more, leaving the cheaper products on the back burner.
Overall, holiday spending between November 1 and December 24 went up by 3.8% compared to last year, per Mastercard SpendingPulse 💳, which excludes auto sales. But this doesn't capture the post-Christmas rush, a crucial time for many retailers.
As the cost of living climbs 📈, it's clear that not everyone is feeling the holiday cheer equally. For many, tightening budgets means rethinking holiday traditions and spending.
Whether you're indulging in luxury gifts or finding joy in simpler pleasures, the holiday season highlights the growing economic divide. But remember, the true spirit of the holidays isn't just about what's under the tree—it’s about the connections we share ❤️.
Reference(s):
Deepening divide in U.S. holiday spending trends driven by high prices
cgtn.com
