Key Takeaways<\/p>\n
Americans are still shopping. They’re just looking for cheaper ways to do it\u2014and trading down is a popular option.\u00a0\n<\/p>\n
Many companies and experts say customers are buying items they want or need but picking less-expensive versions than they might otherwise\u2014or “trading down”\u2014in categories from groceries and Glad bags to guns. They’re also changing where they shop, going into discount retailers<\/a> more frequently. And they’re testing new brands as they seek to navigate prices pushed higher by trade issues and inflation.<\/p>\n Some companies are seeing the activity more pronounced in lower-income groups than among their wealthier customers. Ross Stores (ROST<\/a>), a discounter, earlier this month reported trade-down across its customers’ income mix. Academy Sports (ASO<\/a>) in June said more customers with incomes above $100,000 had been shopping at its sporting-goods stores. Closeout retailer Ollie’s Bargain Outlet (OLLI<\/a>) saw higher-income Americans making up a chunk of its new customers in its latest quarter.\n<\/p>\n “Lower- to middle-income customers continue to prioritize value and are trading down into lower opening price point products,” said Kohl’s (KSS<\/a>) interim CEO Michael Bender on a conference call Wednesday, according to a transcript made available by AlphaSense. The retailer has been looking for ways to keep those folks spending, Bender said, including making more brands eligible for coupons.\u00a0\n<\/p>\n Some Consumers Save on Some Goods to Splurge on Others <\/p>\n While trade-down could be taken as a signal of economic weakness, some observers note that retail spending remains resilient. U.S. July retail-sales numbers grew<\/a> from June, in line with economists’ expectations though slower than last July’s advance; one observer characterized the consumer at the time as “down but not out.”\n<\/p>\n Yeti (YETI<\/a>) executives have reported some trade-down in higher-priced soft coolers. Clorox (CLX<\/a>) has said the same about its Glad line of bags and storage products. One analyst earlier this month said firearms shoppers have been picking up lower-priced guns.\u00a0\n<\/p>\n Some companies say their customers are sticking to their habits. Dick’s Sporting Goods (DKS<\/a>) executives on Thursday said, “Our consumer across the board is doing so well, and you see that in the fact that we’re not seeing\u00a0trade\u00a0down\u00a0from best to better or better to good.”\n<\/p>\n Shoppers have a range of tools they can use to feel better about spending. Energizer in early August said some customers were buying larger packs of batteries, a sign they might be looking to lower their unit costs, while others were going smaller to manage their out-of-pocket cost. (Some companies have also been changing product sizes, though that’s sometimes criticized as “shrinkflation<\/a>.”)\n<\/p>\n Secondhand-store operator Savers Value Village (SVV<\/a>) in late July discussed “powerful and durable secular trends driving higher adoption of thrift<\/a>.” Some grocers have seen more interest in store-brand goods<\/a>.\u00a0\n<\/p>\n And sometimes smart spending from one pocket can free up spending from the other. McKinsey in a June report said many customers trade-down on one item so they can splurge on another; nearly a fifth of those it surveyed, the consulting firm said, sought to save on essential stuff so they could spend more on something less vital.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways A number of companies say American shoppers are “trading down,” looking for cheaper ways to spend…\n","protected":false},"author":3,"featured_media":189665,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-189664","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115124365204011914","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/189664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=189664"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/189664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/189665"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=189664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=189664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=189664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}