Vol. IV, No. 12, December 2004

Growth Reported in High-Income Households

The U.S. Census Bureau reports the number of households with annual incomes of $75,000 or more increased from 20.5% in 1993 to more than 25% in 2003. The number of households with incomes of $100,000 or higher also increased in the 10-year period, from 10.6% to 15.1%.

Households with incomes of $50,000 and higher (44% of households in 2003) are the predominant purchasers of New Luxury products and services, the fastest growing category of products and services and the most profitable overall. Examples of companies targeting this demographic with New Luxury offerings are Panera Bread; PF Chang's China Bistro; Bed, Bath and Beyond; Cheesecake Factory; Williams-Sonoma; and BMW.

This is a highly profitable demographic to target with entertainment offerings. Dave & Buster's customer base comes from these higher income households. To date, few family and children's entertainment facilities have successfully positioned themselves to tap this profitable market segment.

For more about New Luxury, see our March 2004 article, It's the Personality that Counts.

Vol. IV, No. 12, December 2004

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Vol. IV, No. 12, December 2004

Growth Reported in High-Income Households

Vol. IV, No. 12, December 2004

LOCATION-BASED LEISURE & ENTERTAINMENT