TRADING UP HITS $700bn
Consumer trading up in the U.S. hit $720 billion in 2006, up from $670 billion in 2005, according to The Boston Consulting Group (BCG). In all, trading up accounted for 21% of the $3.5 trillion Americans spent in 2006.
Trading down also posted an improvement, accounting for 33% of spending in 2006 as compared to 32% in 2005 and 31% in 2004.
The study found that traditional middle market products are the ones suffering. The middle accounted for 46% of spending in 2006, compared with 48% in 2005 and 51% in 2004.
The top ten trading up retailers include Coach, Nordstrom, Limited Brands, Inc., Whole Foods Market Inc., Tiffany & Co., Neiman Marcus, Brinker International, Williams-Sonoma, Saks and Cheesecake Factory.
Trading down also posted an improvement, accounting for 33% of spending in 2006 as compared to 32% in 2005 and 31% in 2004.
The study found that traditional middle market products are the ones suffering. The middle accounted for 46% of spending in 2006, compared with 48% in 2005 and 51% in 2004.
The top ten trading up retailers include Coach, Nordstrom, Limited Brands, Inc., Whole Foods Market Inc., Tiffany & Co., Neiman Marcus, Brinker International, Williams-Sonoma, Saks and Cheesecake Factory.
posted at 1:39 PM
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