Inflation-weary U.S. consumers were projected to splurge this year on holiday gifts, food and decorations-fueled by online purchases, according to industry estimates, but the gains were increasingly driven by higher-income households,
"Not every retailer has navigated the turbulence well," noted the report. "The Container Store and Party City chains both filed for bankruptcy protection in the days before Christmas. Meanwhile, the founding family of Nordstrom clinched a deal to take the struggling department store private."
"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," said Chris Peterson, chief executive of Newell Brands, which makes Sharpie pens, Graco strollers and Oster kitchen appliances.
The company is anticipating stronger demand for its high-end blenders, those costing 100 dollars or more, and dwindling demand for its entry-level blenders that fetch 20 dollars or less, Peterson said. The company is ditching efforts to improve its cheapest blenders and is instead focusing on enhancing its top-of-the-line items for those looking to splurge.
Overall, consumers spent 3.8 percent more from Nov. 1 through Dec. 24 than they did in the same period last year, according to Mastercard SpendingPulse, which excludes auto sales. The tally doesn't include the week after Christmas, which is a key shopping period.
