The income divide: What the spending gap means for retailers

Upside’s latest research report, The Income Divide, reveals a growing split in consumer spending behavior that traditional retail metrics often overlook. While topline demand appears stable, the data shows a clear divergence at the $75,000 household income level. Higher-income consumers are increasing their spending and shopping more selectively across brands, while lower-income households are cutting back, reducing trips, and prioritizing price above all else.

Drawing on analysis of more than 10 billion transactions and surveys of thousands of consumers and retailers, the report highlights how both groups remain value-driven — but define value in fundamentally different ways. For retailers, this shift challenges the effectiveness of one-size-fits-all strategies and underscores the need for more personalized approaches to drive traffic, loyalty, and profitable growth.