February 20, 2024, 10:04 am EST
Frugal Economy
Frugal economy would appear when most people are struggling to survive. Instead of buying expensive smartphones or shoes frequently, every dollar has to be used wisely to get through the difficult time.
Higher debts or credit card balances force the person to change spending habits. Another potential reason to spend less could be loss of job or less income compared to the good times. Of course, there are groups of people who always spend wisely on the cost-value formula. This group would likely become larger when the economic condition deteriorated.
Here are some retail stores who may benefit from the frugal economy:
- Super Stores: Walmart (WMT)
- Discount Retailer: Dollar Store (DLTR), Dollar General (DG), Burlington Stores (BURL)
- Membership Wholesale: Costco (COST)
- Off-Price Retailer: Ross Stores (ROST), TJX Cos (TJX)
At the same time, we could see high-end retailers suffer like VFC, NKE.
