Retail, travel, and dining executives are no longer treating all customers as equal. Spending patterns have split in ways that leave businesses with a hard choice: double down on the high earners who are still opening their wallets, or try to keep hold of price-sensitive shoppers who are quietly pulling back. The reality is that many are shifting their weight toward the first group, even if it risks leaving the second behind.
Spending Patterns Reveal a Divide
Credit card data paints a picture that economists have been hinting at for months. Higher earners are still moving forward, with modest year-over-year gains in household spending. Lower earners, by contrast, have seen little to no momentum. The driver isn’t just “consumer confidence”—it’s the mechanics of wages. Paychecks at the top are expanding more quickly, which compounds the gap in disposable income.
Inflation has only sharpened this divide. For households where groceries and rent already consume the bulk of income, price hikes feel like a tax on daily life. A family trying to keep up with rising utility bills or supermarket prices doesn’t have the slack for dinners out or weekend getaways. By contrast, affluent households absorb the higher costs and still book flights, order tasting menus, or upgrade to the latest gadgets.
Freepik | Higher prices on basic needs impact lower- and middle-income households most severely.
Airlines Lean In on Premium Patrons
A walk through any major airport shows where airlines are placing their bets. Boarding areas for business class look more like boutique lounges, while economy cabins quietly lose perks they once had. Airlines are reconfiguring planes to add rows of premium economy and expanding lie-flat suites—sections that used to be the preserve of corporate accounts but are now marketed heavily to affluent leisure travelers.
It’s not just about comfort; it’s about margins. A single premium seat can generate several times the revenue of an economy one. That calculus explains why carriers like United and American are polishing details that once seemed almost extravagant—redesigned bedding, multi-course meals, even specialty wines—while keeping base fares lean.
Retailers Court Affluent Shoppers
Mass-market retail has been shifting, too, though in subtler ways. Once shorthand for low-cost essentials, Walmart has quietly added aspirational touches: revamped aisles, better lighting, and marquee brands that attract shoppers who might have previously headed to Target or Best Buy. The move signals recognition that higher-income households have become a more consistent part of its base.
Still, executives know there’s a fine line. They can’t alienate long-time customers who rely on Walmart for affordability. The strategy, then, isn’t to abandon value entirely but to broaden the range: inexpensive staples remain, while shelves also make room for premium headphones or higher-end home goods.
Freepik | To keep sales steady, fast-food chains are focusing on premium items to attract high-income consumers.
Dining Sector Navigates Two Worlds
Restaurants face the most visible consequences of this divide. Fast-food chains rely on volume, but volume drops fast when households earning under $50,000 cut back. McDonald’s, for example, has openly acknowledged fewer visits from lower-income customers this year, a trend that forced the company to roll out bundled “value meals” to draw them back.
Chains are also rolling out more “treat yourself” items—specialty sandwiches, upscale coffee drinks, or seasonal tie-ins that cost several dollars more than the basics. They’re targeting a diner who values speed but doesn’t mind splurging a bit in the process. Right alongside those, value meals remain, creating a split screen of affordability and indulgence.
The Risk of Exclusion
On paper, the dependable group is the one with disposable income. They’re steady, they’re less rattled by inflation, and they can carry premium pricing. But leaning too hard into that crowd can backfire. The lower-income customers—while less flashy in the numbers—are the ones who show up week after week and keep sales grounded.
The real test for companies will be finding a balance: serving the person who wants a five-dollar combo as well as the one who books the premium add-on. Lose one side of that equation, and long-term stability starts to wobble.
