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Holiday Sales Reveal a Split in Consumer Spending

During Christmas, higher-income households increased spending on food, decorations, and dining, benefiting retailers like Williams-Sonoma, while lower-income families faced financial strain, cut back on celebrations, and impacted budget-focused brands.





The purchases of the food and decorations increased during Christmas by  higher-income households, those making $100,000 a year. For instance, restaurant spending and online retail sales increased. However, for the lower-income families, they struggled as the demands for goods increased. The companies have benefited from the mass purchases of the customers, such as Williams-Sonoma and Saks. However, Dollar Tree and Dollar General suffered from customers who had to tighten their belts.

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While the sentiments of the higher-income families were improving, that of lower income families were not. The middle and lower income families were struggling and did not have fun during their holiday season. They saved money to buy decorations and invited less people. As a result, companies such as L.L. Bean and Real Flame were disadvantaged, having to lower their prices significantly.

 
 
 

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