Target slashes prices, Wendy's one-ups McDonald's, Red Lobster goes bankrupt: Retail news roundup
Plus, Nestle plans to launch a new food line catered to Ozempic and Wegovy users
In the world of retail, Wendy’s is deploying a $3 breakfast bundle to compete with McDonald’s $5 meal deal. Red Lobster has filed for bankruptcy protection and is asking customers to “root for us,” as it promises to stay in business. Target is planning to cut prices on nearly 5,000 items by summer – which could help it offset a sales miss during the first quarter.
Meanwhile, Oreo maker Mondelēz International will have to pay a $366 million fine to the European Union (EU) for rigging cross-border sales of its chocolates, biscuits, and coffee products, and despite rumors, Chili’s isn’t closing, but it is closing some locations. Here’s what else went down this week.
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Nestle is getting into the weight loss business. The line-up, called Vital Pursuit, will include 12 items and is expected to arrive in the frozen food aisle of grocery stores by the end of the year.
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The fast food chain meal deal wars are heating up. This time, Wendy’s is making a bid to reach inflation weary consumers with a $3 breakfast bundle, and it comes with fries (well, potatoes).
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“Root for us,” Red Lobster told customers in its latest statement on X, the platform formerly known as Twitter. The crustacean purveyor filed for bankruptcy protection on Monday, but it also wants to assure customers that it still plans to stick around.
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Target isn’t doing so well in the inflation economy. And that didn’t sit well with shareholders. The company’s stock tanked 7% after it reported a decline in sales during its first quarter, which it said was due to cash strapped consumers spending less on groceries and discretionary goods, including home decor and apparel.
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With just a week before Memorial Day, Target is slashing prices on thousands of products — from milk and soda to paper towels, diapers, and pet food. It’s planning to cut prices on nearly 5,000 items by the summer.
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After more than half a century of selling Americans affordable shrimp and lobster, the world’s largest seafood restaurant chain filed for bankruptcy protection on Monday.
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Macy’s is trying to find a sweet spot that resonates with cash-strapped consumers and shareholders and it seems to be, at least for now, working. The retailer beat estimates, thanks to Bloomingdales and its cosmetics line, Bluemercury.
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Inflation won’t keep Americans from spending cash on Memorial Day weekend – even if it’s more expensive than it once was. The price has gone up 10% when compared to last year.
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Target’s in some trouble – and its woes may be helping other discount retailers like Walmart and even T.J. Maxx, which both saw their stocks reach all-time highs.
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Oreo maker Mondelēz International will have to pay $366 million to the European Union (EU) for limiting cross-border sales of its chocolates, biscuits, and coffee products. The Commission did extend some grace to the snack company, granting Mondelēz a 15% fine reduction.
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Restaurant chain Chili’s was recently flooded with claims that it was closing all of its doors. It isn’t. But that doesn’t mean that Chili’s isn’t closing some locations. Meanwhile, other chains like Cracker Barrel, Red Lobster and TGIFridays are.
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Discretionary consumer spending isn’t affecting all footwear companies equally. For Skechers, its wholesale partners seriously boosted sales for the California-based company last quarter.
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Skechers is already making plans for next year’s Super Bowl. It’s first in company line-ups to purchase advertising space for the “Big Game,” in 2025.
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Lowe’s is continuing to face headwinds as it grapples with a slowdown in home sales, higher interest rates, and a pullback in consumer spending. That didn’t keep it from beating Wall Street’s expectations.
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Consumers may be holding off on spending money during their weekday lunch excursion, but that doesn’t mean they’re not splurging on the weekend. That, however, means that restaurants and bars have yet to return to pre-pandemic levels.