Consumer has held up and continuing to shop despite K-shaped economy: Former Saks CEO Steve Sadove

Consumer Resilience - The US consumer has shown remarkable resilience, maintaining a consumption trend of approximately 4% growth despite previous expectations of a downturn [2][4] - The holiday season outlook predicts about 4% growth compared to the previous year, with early signs of heavy discounts for Black Friday [4] Economic Bifurcation - A "K economy" is emerging, where high-end consumers are thriving, closely tied to stock market performance, while lower-end consumers are facing significant financial strain [3][4] - There is a noticeable bifurcation in consumer behavior, with value-focused retailers outperforming traditional department stores [5][7] Retail Performance - Companies that emphasize value and innovation, such as Walmart and off-price retailers like TJX and Ross, are performing well [5][6] - Target is struggling to deliver the same level of value as Walmart, despite efforts to improve [6] Market Trends - Off-price retailers are gaining market share from department stores, which are under pressure due to their high-low pricing models [7] - There is a convergence in shopping behavior, with higher-income consumers increasingly shopping at value-oriented retailers like Costco and Walmart [8][9] Membership Models - Costco and Walmart are successfully leveraging membership models to attract a diverse consumer base, offering significant value [9][10] - Both companies are innovating in fashion and apparel, capturing market share from competitors like Target [10][11] Consumer Segmentation - There is notable growth in the $100,000+ income segment at both Walmart and Costco, while lower-income consumers are also shopping at dollar stores and off-price retailers [12]