High-income people are afraid to buy, and sales of large items in the United States are in a slump

It is learned that according to foreign media reports, as spending among high-income people in the United States is decreasing, the purchase of large items such as electronic products and home appliances is threatened.

The financial situation of high-income people is worrying

Data from PYMNTS shows that by the end of last year, 16% of low-income consumers were living paycheck to paycheck and had problems paying bills. While 34% of high-income consumers were living paycheck to paycheck and had no problems paying bills. Among the high-income group, 36% expect their financial situation to get worse, down from 41% in the summer of 2022. As a result, only a little more than a third of people plan to spend money on travel, buying a new car or expensive clothes.

The survey also found that about 19% of high-income earners said holiday spending had a "very significant or extremely significant impact" on credit card debt. In addition, nearly 30% of consumers said they had no credit card balances and did not make holiday purchases. Therefore, if inflation continues to rise, people will spend less money on high-end goods and services.

According to American Express, high-income consumers in the United States saw their bills, including card purchases, grow 15% at the end of 2022. However, as inflation continues, high-income consumers’ spending on travel, restaurants and boutiques will be tepid in 2023.

The ripple effect has begun, with weak sales of big-ticket items

In its financial report, US electronics retailer Best Buy highlighted that sales in its three major categories declined in the fourth quarter, including computers and mobile phones (down 10%), consumer electronics (11.8%) and appliances (13.2%).

Big Lots noticed that high-income consumers were beginning to embrace the “trade-in” concept. The company’s management also noted that its private label brands were particularly popular with high-income people. In addition, Big Lots CEO Bruce Thorn said, “Revenue from high-income customers is twice as high as that from core customers…” It is worth noting that Walmart has also noticed the same trend, with half of its grocery store sales growth being driven by purchases from high-income consumers.

According to the latest PYMNTS Consumer Inflation Sentiment report, 36% of high-income consumers with annual incomes of more than $100,000 have reduced their purchases of large items. In addition, high-end alcohol sales have also been facing headwinds. Whether high-income or low-income, more and more Americans are in the same boat - tightening their belts and fighting inflation.

Editor ✎ Nicole/

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