FINANCIAL TIMES: Consumer spending in the US has turned into a tale of two cities in 2010, with an entire segment of consumers splurging confidently on the finer things in life, while another segment, concerned about unemployment and with little or no discretionary income, spends only on bare necessities…
Sung Won Sohn, professor of economics at California State University and vice-chairman of Forever 21, the retailer, describes it as “barbell” shaped behaviour by consumers.
“People with money are not accelerating spending but are spending probably at the same levels as they have in the past – Mercedes and BMW are still going well,” says Mr Sohn. “But the middle-income folks in America have become extremely value-conscious.”… (more)
