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Academy Sports & Outdoors’ biggest shopping cohort is now higher-income consumers.
The chain tends to draw value-conscious consumers looking for everything from bicycles to outdoor grills, and its shoppers have historically been evenly split across higher-, middle- and lower-income households. Not anymore. Roughly 40% of Academy's customers are now higher-income, or households earning over $100,000, making it the largest share of the three income groups.
“We’re seeing very different behaviors as it relates to people and how much money they make in their household,” Chief Financial Officer Carl Ford told me recently.
Around last fall, Ford started to see more higher-income shoppers, a trend that accelerated into early this year. It stepped up to 40% for the first time in the three months ended Nov. 1. The more affluent shoppers are looking for value and are lured by some of Academy’s newer brands and products, such as Nike’s Jordan Brand footwear, according to Ford. Middle-income households, meanwhile, have held fairly steady while households making below $50,000 have pulled back on purchases and visits, he said.
Academy isn’t the only one seeing two types of shoppers. Across retail, higher-income households are spending differently than less-affluent ones this holiday season, with upper- and middle-income customers continuing to spend while those on the lower side make adjustments and seek value.
A few stats and trends to note, according to the Bank of America Institute:
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Higher-income households increased spending by 2.6% this year through November compared with last year;
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And they seem to be spending more on the holidays;
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Meanwhile, lower-income groups lagged behind, with spending up 0.6% in November.
Academy is working to keep the higher-income shoppers engaged with offerings from Jordan Brand, outdoor speakers from a brand called Turtlebox and Meta sunglasses. But these consumers are looking for value just like the other income groups and while they may come in for higher-ticket items, they are shopping all price points once in a store, Ford said.
“They may be intrigued or wooed by the new better and best brands,” he said, referring to the way Academy divides its goods into three price-related categories of good, better and best. “But once they get into the store, they're not limiting themselves to that.”
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