Upscale Companies Flourish as Middle Class Dwindles
- 10 years ago
Based on observations that high-end businesses are booming and those intended to draw the average person continue to falter, many experts say there’s no doubt that the middle class is shrinking.
Based on observations that high-end businesses are booming and those intended to draw the average person continue to falter, many experts say there’s no doubt that the middle class is shrinking.
Established businesses like Sears and JC Penney that have long catered to those who occupy the space between the rich and the poor are reporting store closures and slow sales.
Mid-priced dining establishments, including Red Lobster and Olive Garden, are also taking big hits.
Meanwhile, significantly pricier options such as Capital Grille are watching their sales figures rise.
Hotels and casinos that attract big earners are also reporting greater successes than their more moderately priced counterparts.
PricewaterhouseCooper’s head of global retail and consumer practice confirmed that the middle is a bad place to be right now.
Researchers have pointed out that much of the country’s economic recovery is being propelled by the upper classes, and economists warn that that is a potentially dangerous situation.
Said one expert from Washington University in St. Louis, "It's going to be hard to maintain strong economic growth with such a large proportion of the population falling behind. We might be able to muddle along — but can we really recover?"
Based on observations that high-end businesses are booming and those intended to draw the average person continue to falter, many experts say there’s no doubt that the middle class is shrinking.
Established businesses like Sears and JC Penney that have long catered to those who occupy the space between the rich and the poor are reporting store closures and slow sales.
Mid-priced dining establishments, including Red Lobster and Olive Garden, are also taking big hits.
Meanwhile, significantly pricier options such as Capital Grille are watching their sales figures rise.
Hotels and casinos that attract big earners are also reporting greater successes than their more moderately priced counterparts.
PricewaterhouseCooper’s head of global retail and consumer practice confirmed that the middle is a bad place to be right now.
Researchers have pointed out that much of the country’s economic recovery is being propelled by the upper classes, and economists warn that that is a potentially dangerous situation.
Said one expert from Washington University in St. Louis, "It's going to be hard to maintain strong economic growth with such a large proportion of the population falling behind. We might be able to muddle along — but can we really recover?"