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And economists wonder how long those who are better-off can even keep it up.
Retail giant Target appears to be banking on refreshed product lines, which can make shopping feel more like a treasure hunt.
Incomes are up, consumption is up too — but the personal savings rate is down to 3.4%.
Spending in many sectors, like furniture and online shopping, was strong. Falling prices also depressed the top line numbers in some categories.
“I’m not embarrassed to say I bought something from Walmart anymore,” says one such shopper.
When tariffs increase, costs often go up for business owners, who often then pass some of those increased costs along to consumers.
While sizable gains in the value of stocks and real estate has likely boosted spending, it’s done less to improve sentiment.
Some steakhouses are changing their menus and venues to accommodate new consumer preferences.
Consumers’ inflation expectations are falling. But they say the high prices imposed by inflation are still eroding living standards.
Why department stores struggle to retain relevancy.