Breaking News: Retailers and Restaurants Cutting Prices Amid Slow Traffic

The price of goods has been on the rise for years and it was apparent that constant increases were not sustainable, and it was only a matter of time before consumers walked away. The good news is that those high prices might be cooling off for summer. Major retailers and restaurants have announced plans to discount items and offer value deals to bring back customers. Just last week we discussed the dire straits that companies have found themselves in after failing to meet expectations in the first quarter of the year. We correctly predicted that prices would need to change drastically and it would have to happen immediately. Companies like Target, Wendy’s, and McDonalds are trying to reverse their disastrous course and salvage the second half of the year.

Target shocked the retail space this week when they announced that they will be reducing the price of 5,000 items with 1,500 items having already seen a reduction. The reduced-price products range from everyday foods to school supplies, and summer essentials like sunscreen. Target is differentiating these items with a special red tag for customers online and in store. The move by Target is expected to have a domino effect on other retailers offering discounts. Grocery chain Aldi, a company already known for offering discounted goods, is following suit by reducing the price of over 250 items this summer. Giant Food has also announced discounts on private label essentials like milk and bread. Crafts retailer Michaels has also announced a 40% price cut on over 5,000 items.

Restaurants are also getting in on the discount by bringing back value menus that have been scarce since 2020. Wendy’s is leveraging the popularity of their breakfast offering by creating a $3 breakfast combo. McDonald’s will be joining the action this summer when the brand debuts a $5 meal combo that gives customers three different entrée choices. Fast Food companies like McDonald’s and Wendy’s have seen some of the highest price increases and faced the most backlash from consumers with slower traffic.

For the past several years companies have offset traffic losses with higher prices, yet it seems that this is no longer a profitable strategy. Customers want better value at cheaper prices and companies like Target and McDonald’s are trying to answer that bell. This summer will see even more companies jump in on discounts as they fight to make 2024 a profitable year. Consumers have spoken and only time will tell if these discounts assuage their fears and bring them back.