In recent years, the CEO of Starbucks has noticed a shift in consumer spending behavior. Infrequent customers are becoming more cautious with their purchases, according to him. This trend is also being observed by executives at Amazon, who have reported that US consumers are tightening their belts and looking for deals on lower-priced items.
Amazon’s CFO has mentioned that customers are increasingly opting for consumables and everyday essentials, which tend to be cheaper products. Similarly, Starbucks’ CEO has stated that a more cautious consumer base, particularly infrequent customers, is impacting sales across the industry.
Despite facing challenges such as inflation and rising costs, US consumers are still trying to stretch their dollars as far as possible. Lower- and middle-income households are seeing softening spending growth, according to a report by Bank of America. Companies like McDonald’s have also noticed this trend, with their CFO stating that customers are trading down to value menu items in order to save money.
Executives at Amazon and Starbucks did not provide immediate comments when contacted by BI outside of regular business hours. However, it is clear that companies need to adapt to these changes in consumer behavior in order to remain competitive in the current economic climate.