Retailers and Restaurants Slash Prices to Lure Back Consumers

The season of markdowns is in full swing as retailers and restaurants are slashing prices and offering discounts to entice consumers to spend. This trend comes as price-sensitive consumers are trading down to cheaper goods in order to save money.

Some stores, like Target, have seen sales declines due to this shift in consumer behavior, while others, like Walmart, have benefited from the increased focus on value shopping. Major retailers such as Walmart, Target, Walgreens, Aldi, and Ikea have all started rolling out price cuts to attract customers.

Fast food chains like Burger King, Starbucks, and McDonald’s are also getting in on the action with new meal deals and value offerings. Costco’s CFO has reassured customers that their famous $1.50 hot dog combo is here to stay, while Big Lots is ramping up their close-out bargains to create a “treasure hunt experience” for shoppers.

According to a Bank of America report, spending at discount grocery stores has been on the rise as consumers look to offset high grocery costs and other rising expenses. Grocery prices were up nearly 30% in April 2024 compared to January 2020 levels.

While some retailers, like Dollar Tree, have been raising prices, the overall trend seems to be towards value and discounts. This shift is likely to continue as retailers look to attract price-sensitive customers back to their stores.