EP 278: Gaming the K-Shaped Economy

We'd love to have your feedback and ideas for future episodes of Retail Unwrapped. Just text us!There is widespread confusion about the popular and overused K-shaped economy meme. General understanding oversimplifies consumers into "haves, have-nots, and have-everythings," when the reality is far more nuanced and fluid. If retail executives make million-dollar decisions based on an incomplete understanding about the K-shaped economy, it's going to cost them. Join Shelley and Katie Thomas from the Kearney Consumer Institute as they challenge conventional wisdom about the economy that's leading retailers to misclassify customers and fail on pricing, assortment, and messaging. Katie reveals that the middle class isn't disappearing but rather is pragmatic and surprisingly mobile, selectively reallocating resources across all categories that makes traditional good-better-best models look obsolete. Listen and learn about the real crisis facing retailers; it isn't about hitting price points; it's about the growing price-value mismatch that risks losing loyal customers who have more options than ever in a marketplace where luxury brands have overpriced themselves and cheapened products at the bottom create an inevitable race to the bottom.Special Guest: Katie Thomas, Lead, Kearney Consumer Institute (KCI) For more strategic insights and compelling content, visit TheRobinReport.com, where you can read, watch, and listen to content from Robin Lewis and other retail industry experts, and be sure to follow us on LinkedIn and Twitter.