Major consumer brands are rolling out smaller, lower-cost products and increasing value-focused promotions as inflation-weary Americans continue to cut back spending, according to The Wall Street Journal.
Companies are adjusting pricing and packaging strategies to appeal to lower-income consumers facing higher costs for groceries, fuel and other essentials.
Coca-Cola is introducing slimmer, lower-priced soda bottles, while Target has expanded its selection of $5 toys. Stellantis says it plans to launch two vehicle models priced below $30,000. Boston Beer, the maker of Samuel Adams and Twisted Tea, is also offering smaller beverage packs to keep some products priced under $10.
The affordability push comes as inflation remains elevated, with consumer prices rising 3.8% in April from a year earlier. Walmart executives say lower-income shoppers are showing signs of financial strain, noting customers are buying smaller amounts of gasoline and focusing more heavily on discounts and promotions.
At the same time, large corporations continue to post strong earnings. More than 90% of S&P 500 companies have reported first-quarter results, with earnings per share up about 29% year over year, according to estimates from financial data firm LSEG.
