Proverbs 22:2 – “The rich and poor meet together: the LORD Yahweh is the maker of them all”
Report Shows: Wealthier Americans Now Shop At Value Supermarkets
The writing is on the wall as wealthier Americans now shop at value supermarkets. US consumers, the biggest economic force in the world are rapidly altering their spending habits and where they get groceries due to persistently high inflation.
In the last 19 months, real wage growth has slowed.
The latest Consumer Price Index (CPI) print via the Bureau of Labor Statistics, which shows prices for the ‘food at home’ category were still at a shocking 12.4% YoY in October.
This means the consumer is trading down for cheaper items at the supermarket.
Bank of America data shows consumer spending at value-tier supermarkets exploded earlier this year as inflation surged.
This adds further evidence that consumers might have been looking for alternative ways to save on groceries by trading down and purchasing from less expensive stores,” the report said.
Why are consumers shifting to value-tier supermarkets?
Essentially the vast majority of Americans find their cost of living is increasing faster than the income they bring home.
A couple of years ago, Congress gave themselves a 21% pay increase, but government officials claim inflation was only at 8 to 10%! Why the big increase in pay if its based on inflation?
Conclusion
The report focused on annual incomes of $50k – $100k and >$100k and found significant shifts in spending as value-tier supermarkets surged in popularity among wealthier Americans.
Grocery chain stores like, Whole Foods is out of price range for a lot of Americans these days.
The focus to become debt free is now a even bigger target for many.
And now, people in higher income brackets are trading down for cheaper items and shopping at value supermarket stores.
People are financing their grocery bills by using credit cards. This is a sad day as many struggle to feed their families.
Food pantry’s are running low and sometimes having to turn families away simply because they ran out of food.
Not trying to argue. Just saying the outsourcing of all the middle class jobs led to the need for cheaper stuff which led to the consolidation of the goods outlets.
Inflation is much higher than what is being reported.
I think that checking your ego before you go shopping is a must. I have been a value shopper my whole life because it works. Stay free, pay down your debts if you have any and prepare for the unknown.
Until next time, Shalom.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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