CEOs see split in U.S. consumerism

By Karen Jacobs

NEW YORK (Reuters) - Executives provided a mixed picture of the U.S. consumer this week, saying that wealthy spenders were driving growth of the luxury market while the tough economy was leading other shoppers to pull back.

Consumers with money are continuing to spend, while those with less funds are being crunched by higher gas prices and the softer housing market, consumer and retail executives said during this week's Reuters Consumer and Retail Summit.

"There's a bifurcation in the consumer marketplace," Saks Inc. (SKS.N: Quote, Profile, Research, Stock Buzz) Chief Executive Steve Sadove said.

"People at the higher end of the luxury market are feeling pretty good about their personal situation," Sadove said, while "people who are at the lower end are making choices between gas and clothes."

But even in this environment, some CEOs said consumers were shelling out extra money for trendy accessories to spruce up a wardrobe as well as for $1,000 washing machines, albeit ones that save water and energy.

"Our products, where we have distinctive innovation and certainly significant changes, have had continued healthy growth all through this difficult demand period," said Jeff Fettig, CEO of appliance maker Whirlpool Corp. (WHR.N: Quote, Profile, Research, Stock Buzz)

Blue Nile Inc. (NILE.O: Quote, Profile, Research, Stock Buzz), an Internet seller of upscale jewelry, said men were still spending thousands of dollars for that special engagement ring.

And VF Corp. (VFC.N: Quote, Profile, Research, Stock Buzz) -- the parent of clothing brands Wrangler, Lee and Nautica -- said that when money was tight, consumers were choosing to spend their discretionary dollars on well-known brands that they trust.  Continued...