Newlyweds Brittany Zwier and Frank Martinez, who earn over $100,000 a year, are cutting back on dining and grocery spending as the cost of living climbs. The couple now shops only at “Aldi”, saying the prices are lower than other stores. “We’re just buying what we need right now,” Zwier told reporters outside an “Aldi” in New Jersey.
Aldi: The Affordable Grocery Choice
Zwier and Martinez have stopped buying beef after prices hit record highs this year. They also cut back on eating out, saying they now go out only once every three months. More than half of respondents in a recent NBC News poll said they have changed the groceries they buy to stay within their budgets, with food and housing topping the list of economic problems.
The discount chain has grown rapidly: it operated 1,230 U.S. stores in 2012, nearly doubled to about 2,400 in 2023, and plans to add 800 new stores by 2028. An “Aldi” spokesperson told NBC News that shoppers across all demographics are turning to the chain because “no one wants to pay more for groceries than they have to.”
The K-Shaped Economy
Heather Long, chief economist at Navy Federal Credit Union, explained that the K-shape means the wealthiest Americans are doing well while many on the lower end find their paychecks can’t keep up with rising costs. “They feel like they’re falling behind, or, if on a good day, maybe treading water,” Long said.
The shift has hurt fast-casual restaurants. “A lot of the chain restaurants have had a hard time in this environment where people don’t want to pay $15 to $20 for a burrito or a salad,” Long added. Federal Reserve Chair Jerome Powell noted that people are tightening their belts, changing products they buy, and buying less.
Energy Costs and Spending Cuts
Electricity costs have jumped 6.9% in the last year, more than twice the rate of inflation, according to the Bureau of Labor Statistics. Zwier and Martinez have seen their electric and gas bills skyrocket, noting that “we’re using less, and it costs more.”
This winter, U.S. households could spend an average of $995 on home heating alone, an increase of $84 from 2024, according to the National Energy Assistance Directors Association. Executive director Mark Wolfe said, “These increases may not sound dramatic to higher-income households, but for families already struggling, they are devastating.”
Michael Torres, who earns less than $50,000 a year, said, “As much as you can save is important,” when asked about Aldi. “You still want to make sure you have the fridge full, whatever you need on the table.” He added, “There’s wants and there’s needs. If you need something, you get it. But for now, some ‘wants’ may have to wait.”
Key Takeaways
- Newlyweds turn to Aldi to curb rising living costs.
- A K-shaped economy leaves many consumers tightening budgets and cutting dining out.
- Energy bills, especially heating, are a major new strain on household finances.
The story illustrates how rising food, housing, and energy costs are reshaping consumer habits, even as the stock market and GDP show strong growth.
