Associated Press
American shoppers are splitting again: The affluent are finally starting to buy, picking up designer clothes at places like Nordstrom, while those on the lower economic rungs are still scrimping by, heading to Wal-Mart for the basics.
Recent earnings reports from major retailers suggest that the wealthy, who pulled back their spending the hardest during the financial meltdown last fall, are once again being enticed to open their wallets and going back to higher-end outlets.
"It's a good sign, but we don't see the same across the board," said Richard Hastings, a consumer strategist with Global Hunter Securities LLC.
It's still a far cry from the era of conspicuous consumption. No matter the tax bracket, people are still focused on value and trying to avoid overspending -- whatever that might mean to them.
Luxury chains like Nordstrom Inc. and Bloomingdale's, owned by Macy's Inc., say shoppers are spending again on items like shoes and dresses, but still shopping for lower prices and classic pieces that get a lot of use.
On the other hand, discounters like Wal-Mart Stores Inc. are lowering prices even further to coax their less-well-off shoppers to keep spending.
Wal-Mart noted more pronounced swings in spending between paycheck cycles -- a sign that people have little extra to spend.
That makes sense because Wal-Mart customers who earn the least money are among the economy's hardest-hit as unemployment tops 10 percent and gas prices edge upward, said Hastings, the consumer strategist.
"The lower-income Walmart shopper, they start to become poorer than usual, and they'll really start to lag behind," he said.
AP Retail Writer Ashley M. Heher contributed to this report from Chicago.
