Best Buy CEO Sounds Alarm on Growing Wealth Gap Between Affluent and Poor

Growing Spending Power Gap Keeps Best Buy's CEO Up at Night In a candid conversation at the Most Powerful Women Summit 2025, Corie Barry, CEO of Best Buy, expressed her concern over the widening spending power gap between affluent and low-income households in the US. This trend has significant implications for the electronics retailer, which caters to a broad customer base. Financial Impact According to data from the US Census Bureau, the top 10% of earners hold approximately 75% of the country's wealth, while the bottom 50% hold less than 1%. This growing disparity in spending power has resulted in a significant shift in consumer behavior. Best Buy's sales have been impacted, with a decline in revenue growth from 5.6% in 2020 to 2.3% in 2024. Company Background and Context As the largest consumer electronics retailer in the US, Best Buy operates over 1,000 stores across the country. The company has made significant investments in e-commerce and digital transformation to stay competitive. However, with a customer base that spans various income levels, Best Buy faces unique challenges in navigating the changing spending habits of its customers. Market Implications and Reactions The growing spending power gap is not limited to Best Buy's customer base. According to a report by the Economic Policy Institute (EPI), the US economy has experienced a significant increase in income inequality since 1979, with the top 1% holding more than 20% of national income. This trend has far-reaching implications for consumer spending patterns and market growth. Stakeholder Perspectives Corie Barry's comments at the MPW Summit highlight the concerns of retailers like Best Buy, which cater to a broad customer base. "The growing spending power gap keeps me up at night," she said. "We need to find ways to make our products more affordable for everyone." This sentiment is echoed by other industry experts, who emphasize the importance of inclusive pricing strategies and targeted marketing efforts. Future Outlook and Next Steps To address the challenges posed by the growing spending power gap, Best Buy plans to invest in digital transformation initiatives that enhance customer engagement and affordability. The company will also focus on developing products and services that cater to a wider range of income levels. As Corie Barry noted, "We need to be more inclusive and adaptable to meet the changing needs of our customers." In conclusion, the growing spending power gap between affluent and low-income households poses significant challenges for retailers like Best Buy. However, with a commitment to digital transformation and inclusive pricing strategies, the company is poised to navigate this trend and continue its growth trajectory. Additional Statistics: Top 10% earners hold approximately 75% of US wealth Bottom 50% earners hold less than 1% Best Buy's revenue growth declined from 5.6% in 2020 to 2.3% in 2024 The top 1% holds more than 20% of national income since 1979 *Financial data compiled from Fortune reporting.*