The spending divide among US shoppers is widening and retailers are now being advised to cater to two groups of customer – survivalists and selectionists.
PriceWaterhouseCoopers (PwC) issued the advice in the run up to the US holiday season. The period, which includes Thanksgiving, Christmas and New Year, will see cautious spending, says the company. “Shoppers remain cautious about the economy and are concerned about disposable income, the rising cost of living and insufficient salary,” said Steven Barr, PwC’s US Retail & Consumer Practice Leader. The result is a drop in the average household spend over the holiday season to $684 from $735 the prior year.
However, the average spend hides the true figures, which are radically different between two distinct groups.
Survivalists – consumers earning under $50,000 per year – represent 67% of American shoppers (up from 63% in 2012). Constrained by the daily cost of living, survivalists tend to focus on the affordability of purchases, said PwC, and will spend an average of $377 over the holiday period.
Selectionists, on the other hand, who earn over $50,000 per year, represent 33% of American shoppers (down from 37% in 2012). Their average is nearly three times higher, at $978.
