1339 ET - The K-shaped economy thesis may not hold up in the retail industry, Morgan Stanley analysts write in a note, citing data from Numerator. The data suggest that low-income consumers continue to spend, especially at dollar stores, where spending has risen across all income levels since mid-December, they write. "While some of this strength may be a function of better merchandising or improved capabilities, this also challenges the K-shaped narrative given there are signs of trade down from high-income consumers," they write. Rather, it seems that consumers are increasingly seeking value, with Walmart and the dollar stores showing signs of strength while traditional grocers see softer trends. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 09, 2026 13:39 ET (18:39 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.