High-income shoppers are flocking to Walmart and Dollar General, says Consumer Edge's Michael Gunter

Consumer Spending Trends - High-income shoppers are increasingly shopping at discount retailers like Walmart, Dollar General, and Dollar Tree [1] - High-income consumers are spending more at resale companies, indicating a search for deals and value [7] - Low-income consumers are not holding up as well, showing pullback on discretionary items like travel and full-service restaurants [7][8] Retailer Performance - Luxury goods are showing weakness, potentially benefiting mid-range brands like Coach [4] - Off-price retailers such as TJ Maxx, Marshalls, and Burlington are performing well [6] - Resale companies like Savers Value Village and Depop are among the best-performing sectors [6] Pricing and Inflation - Retailers are finding it difficult to pass on price increases to consumers [9] - Pricing at Walmart and Target has been rangebound, with no broad-based price increases outside specific categories [10][11] - Fast fashion company Shein successfully raised prices after the de minimis exemption was removed [12] Economic Outlook - Overall consumer spending is holding up relatively well, better than feared [13] - The high-income consumer is crucial to overall spending, and their behavior during the holiday season is a key indicator for the retail landscape [13][14]