Walmart(US:WMT) Benzinga·2026-01-13 16:10Core Insights - The K-shaped economy is becoming evident in consumer spending patterns, with a clear divide between higher- and lower-income consumers as the economy heads into 2026 [1][2] Consumer Spending Trends - Higher-income consumers are performing well, with strong spending on real assets and homes, while lower-income cohorts are struggling due to persistent inflation [2] - Retail sales in the U.S. appear resilient, but the strength is narrow, with consumers being selective and prioritizing brand loyalty and perceived value in discretionary purchases [2] ETF Performance and Strategy - Value-oriented retailers are benefiting from this selectivity, with ETFs focused on companies like Walmart, Costco, and off-price chains showing strong performance driven by a few value leaders [3] - Consumer staples ETFs are gaining traction as lower-income households reduce spending, indicating a shift towards defensive market segments [4] Consumer Sentiment - Consumer confidence remains low despite equity markets nearing record highs, creating a disconnect that is unusual in the current economic climate [5] Investment Strategies - ETF investors are advised to adopt active strategies that focus on companies catering to value-conscious shoppers and benefiting from productivity gains through AI, while avoiding broad exposure to vulnerable segments [6] - Employment security is a critical factor influencing consumer spending behavior, with job security leading to increased spending and insecurity prompting more selective purchasing [7]