The Thematic Opportunities of the New Retail Landscape

The Thematic Opportunities of the New Retail Landscape

In this article we see some familiar data that we’ve been posting often here at Tematica Research and on our Cocktail Investing Podcast :

Between 2007 and 2016, high-income consumers (the 20% earning more than $100,000) experienced 4% growth of their disposable income, to 63% of total income. The disposable income of middle-income consumers (the 40% earning $50,000 to $100,000) remained flat, at 39%. Meanwhile, low-income consumers (the 40% earning less than $50,000) saw their disposable income dip 16% during that timeframe, putting their discretionary share of wallet at -23%. This widening disparity in US incomes is having an effect on retail. Deloitte looked at revenue growth among different types of retailers over the past five years: “price-based” retailers, those that compete solely on price like discount and dollar stores; “premier” retailers, which offer exclusive products and experiences; and “balanced “retailers, those that focus on price and promotions and sell widely available merchandise. It found the higher-end stores experienced revenue growth of 81%, while revenues for discount stores grew 37%. By comparison, revenues at midrange stores grew only 2%.

Read Full Article: Retailers Feel the Effects of Growing Income Disparity | eMarketer Retail


The exposed opportunity coming out of the realities data hits upon two of our key themes:  The Cash-Strapped Consumer and the Affordable Luxuries investment themes. They are two themes that have been providing strong thematic tailwinds behind several key players on our Tematica Select List with strong returns.

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

Comments are closed.