Stubborn inflation and rising prices for household essentials continue to strain household budgets, deepening an affordability crisis that is causing even relatively affluent consumers to switch up their buying habits.
Key takeaways
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Affordability crisis broadens: Inflation above the Federal Reserve’s target and a more than 25% jump in food-at-home costs over five years are eroding purchasing power.
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Discount chains gain all incomes: Dollar Tree and Dollar General report strong sales growth, rising customer counts, and heavier spending from lower-income shoppers, while a growing share of new customers now come from households earning more than $100,000 a year.
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Walmart benefits from trade-down: Walmart’s rising transaction counts and grocery market share reflect increased visits from higher-income families.
