Read our full analysis for a more in-depth look at these trends.
The rise of value
Why have lower-income households accounted for a larger share of retail spending but also traded down the most?
July 2026
Key takeaways
- Consumers are searching for value again, according to Bank of America internal card data. Spending at discount clothiers and value grocers started to accelerate again early this year. Price-conscious consumers are increasingly looking to general merchandise stores for deals and discounts.
- Looking across the income distribution, higher-income households still punch well above their weight in retail spending but have made up a smaller share of spending at discount clothiers and value grocery stores, according to Bank of America internal data. Conversely, lower-income households account for a larger share of retail spending (excluding gas and autos), while also gaining share in the discount apparel and value grocers markets.
- Additionally, lower-income families have demonstrated an interesting economic pattern, according to Bank of America internal data. Their wages have best kept pace with inflation compared to pre-pandemic levels, but they have also traded down the most - experiencing five times faster spending at discount apparel stores than higher-income households so far in 2026.
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