Ranking Retailers Most Exposed To Middle-Income, Gen Z, SNAP Benefits

Building on our earlier note that Goldman consumer analysts have gone "DEFCON 1" over sliding U.S. consumer sentiment, quoting warnings from top corporate executives such as Kraft Heinz, which described "the worst consumer sentiment we've seen in decades," Goldman Sachs Managing Director Kate McShane provided clients with a note examining retailer exposure across her coverage universe by income tier, demographic profile, and reliance on SNAP benefits.

On retail exposure by age, McShane cited HundredX data showing that the highest exposure to younger consumers (ages 18 to 39) includes Foot Locker (now part of Dick's Sporting Goods), Life Time (LTH), Ulta Beauty, Five Below, and Target, each with more than 30% of their customer base in that demographic. On the opposite end of the spectrum, Home Depot, Williams-Sonoma, and Lowe's have the least exposure to younger shoppers, which makes sense given that many youngsters are splurging on experiences while burdened by student loan debt.