Starbucks CEO comments on infrequent customers becoming more cautious spenders
The CEO of Starbucks has recently stated that infrequent customers are becoming more cautious with their spending habits. This trend is being observed across the industry as US consumers tighten their purchases, according to executives at Amazon and Starbucks. The executives noted that US consumers are being more thoughtful about their spending, looking for deals and opting for lower-priced products.
Amazon’s CFO mentioned that customers were purchasing more consumables and everyday essentials, which are typically cheaper items. Starbucks’ CEO also commented on this trend, stating that a more cautious consumer base, particularly infrequent customers, has impacted sales across the industry. Despite facing challenges such as inflation and rising costs, companies like McDonald’s have seen softening spending growth among lower- and middle-income households. These households are trading down to value menu items in an effort 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 these companies are adapting to changes in consumer behavior caused by the current economic outlook and rising costs. It is crucial for companies to remain flexible and responsive to changing consumer preferences in order to maintain sales and profitability in today’s competitive marketplace.
