US consumers are growing more cautious with their spending habits, as infrequent customers of Starbucks and frequent buyers of Amazon have shown. According to Starbucks CEO Laxman Narasimhan, consumers are being more thoughtful about how they spend their money by looking for deals and cheaper products. Amazon’s CFO, Brian Olsavsky, also noted that customers are trading down and opting for lower priced products.
Both companies are facing challenges as consumers are trying to stretch their dollars due to persistent inflation. Lower and middle-income households seem to be softening their spending growth. McDonald’s has also stated that customers were saving money by trading down to value menu items and purchasing less due to a challenging macro environment with rising interest rates and increased costs.
Overall, companies are feeling the impact of a more cautious consumer base which has led to sales declines for some businesses. The current economic outlook has weighed on consumer traffic and sales across various industries. With challenges ahead, companies are looking for ways to adapt to consumer behavior and make necessary adjustments to ensure continued success.
