Rising Prices Hurt Low- And Moderate-Income Consumers The Most

Rising prices for gas, meat, dairy and produce are eroding the spending power of average shoppers who patronize retail stores like Target and Walmart. But the Associated Press reports that high fuel and food prices are little more than an annoyance for rich shoppers, who have returned to pre-recession splurging patterns. Stores like Saks Fifth Avenue and Nordstrom that cater to affluent shoppers are rebalancing their inventories to adjust to the trend. But stores like J.C. Penney, Walmart, etc., continue to offer discounts to induce low- and moderate-income shoppers on tight budgets to spend more. Faith Hope Consolo, chairman of retail leasing and marketing at Prudential Douglas Elliman, said: “The average shopper isn’t in the game, except for necessities.’’