Goldman analysts examined twelve companies (all within the GS coverage) with high exposure to middle-income consumers, including Walmart, Best Buy, Target, BJ’s Wholesale Club, Tractor Supply, Academy Sports + Outdoors, Dick’s Sporting Goods, Ulta Beauty, Petco, Bath & Body Works, Five Below, and Dollar Tree.
Using GS Data Works, company data, and Pace.AI, analysts led by Kate McShane determined the median household income by retailer, finding an average of about $81,848 across the retailers in the GS universe.
Breakdown:
The average household income across the group is $81,848.
Highest Income: BJ’s Wholesale Club, at $90,433
Lowest Income: Tractor Supply at $68,829
Although the 12 companies vary in their relative exposure to the middle-income cohort, all maintain very high exposure levels (63%–74%) and are positioned to benefit from the tailwinds.
Breakdown:
Highest middle-income exposure: Academy Sports + Outdoors, Walmart, Tractor Supply, Dollar Tree, and Dick’s Sporting Goods. These firms also have the lowest household incomes (except Dick’s).
Lowest middle-income exposure: BJ’s Wholesale Club, Target, Ulta Beauty, Petco, and Bath & Body Works. These firms have the highest average household incomes.
Median household income by retailer.
Latest commentary from executives at the twelve companies on the middle-income consumer.
The full note offers deeper insights into middle-income consumers. ZeroHedge Pro Subs can access this in the usual place.
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