Retailers jacked up prices and squeezed consumers. They might have just blinked

2 comments

1. “Retailers are feeling jittery. Consumers aren’t shopping like they used to. In a game of chicken between stores and shoppers, it’s the stores that appear to be yielding first, by dropping prices on thousands of products.

   The markdowns come as inflation has pushed prices higher for the past two years, squeezing Americans and forcing them to choose between wants and needs.

   Shoppers have pulled back for a year now as costs have risen 20% to 30% higher than they were a year ago and
   as incomes failed to keep up, said Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings.

   This is making consumers across income levels look for deals.

   A lot of retailers have said that discretionary spending is slowing. People are buying essentials, they’re also trading down in prices and then calling it a day,” Stambor said. “If you want to convince consumers to spend you have to give them a reason to do so. Lower prices are a clear opportunity to drive people into the store or online.”

   It’s a lever that Walmart, he said, has pulled forever.

   Walmart said in December that lower grocery prices will be coming this year. “It’s a very effective lever. It’s a great marketing
   strategy to get consumers’ awareness, get them into the store and convince them to open their wallets and spend,” said Stambor.

   “There is the perception of value, and value is very much front of mind for consumers even when as they continue to spend to some extent.”

2. Yes, shopping causes me so much anxiety since inflation has risen prices so high. Just buying the basics of a couple bags your paying for it. Hopefully prices come down soon, but that’s deflation and that’s bad.