Toothpaste makers to beauty chains are adding more premium items like designer creams and services as they reach out to wealthier shoppers who are still...
Many companies that normally cater to middle-income shoppers are unleashing a bevy of premium items in an attempt to grab consumers with more money to spare. But that could leave fewer options for consumers with less money to spare.
Five Below CEO Joel Anderson told analysts on a call in January that those who buy Five Beyond items spend more than twice as much as those who buy only Five Below items. In a conference call with investors in February, Chipotle Chairman and CEO Brian Niccol said the chain — which raised prices by 13.5% in its most recent quarter — is seeing higher-income customers visit more often.
“As products get more expensive and companies are focused more on the wealthier segments of our population or our consumers, everyday people are increasingly underserved and increasingly unable to afford the products they need,” Mabud said.
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