US consumers are becoming more cautious spenders, according to executives at Amazon and Starbucks. This trend has been noted by companies across the industry, including McDonald’s, whose CFO mentioned that customers were trading down to value menu items in an effort to save money.
Despite facing challenges, US consumers are still trying to stretch their dollars in the face of inflation. Lower- and middle-income households are seeing softening spending growth, according to a report by Bank of America. This is due in part to the current economic outlook and rising costs, which continue to impact consumer confidence and spending habits.
Amazon’s CFO mentioned that customers were looking for deals and trading down for lower-priced items. Similarly, Starbucks’ CEO commented that customers were growing more cautious with their spending habits. The executives noted that infrequent customers have been particularly impacted by this trend, as they are more likely to be price-sensitive when making purchasing decisions.
To adapt to these changes, companies like Amazon and Starbucks must find ways to offer value while maintaining quality standards. This may involve expanding product offerings or offering discounts on certain items or services. In addition, companies must stay attuned to changing consumer preferences and adjust their marketing strategies accordingly.
Overall, while the current economic landscape presents challenges for businesses across industries, it is essential for companies like Amazon and Starbucks to remain agile and responsive in order to meet the evolving needs of their customers.
