Record holiday sales helped retailers, but purchasing patterns across income groups diverged starkly. Middle- and lower-income consumers grew more selective, carefully weighing where and when to spend amid economic uncertainty. Meanwhile, higher-income shoppers continued to spend freely.

This spending divide is shaping current retail trends: Budget-conscious consumers are prioritizing essentials and seeking the best deals, while affluent shoppers prop up categories like designer goods, travel, and high-end experiences.

Key Question: What do Q4 2024 earnings tell us about the state of US consumer spending?