McDonald's Mideast pain, Walmart's new thing, and Aldi wins inflation: Retail news roundup
Plus, a Wendy’s exec says it won’t ‘get too greedy’ with pricing, following its surge pricing debacle
Wendy’s said it’s being careful about pricing, likely in an effort to avoid the public relations fiasco of February. McDonald’s is seeing a slowdown in sales, which it is chalking up to consumers in the U.S. being more “discriminating with every dollar.” And Walmart plans to close its health centers, while simultaneously launching its own premium grocery brand.
Meanwhile, Peloton is trying to get back into the saddle through a partnership with Hyatt Hotels to provide it with 800 of its stationary bikes, and Yum Brands says consumers are spending less at its KFC and Pizza Hut divisions.
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Wendy’s doesn’t want another surge pricing debacle. The fast food restaurant chain said it has tapped an external pricing consultant “to make sure they’re making the right pricing decisions.”
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A Big Mac and fries doesn’t appear to be capturing the attention of consumers for now. McDonald’s said the slowdown was in part due to consumers in the U.S. tightening their wallets — and others staging boycotts related to the Israel-Hamas war.
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Walmart is closing all 51 of its health centers across five states and its virtual health care service due to a lack of profitability. The big-box retail chain cited a “challenging reimbursement environment and escalating operating costs.”
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Walmart is stepping up its grocery game with a new line of trendy, chef-inspired foods, in its largest private brand food launch in two decades. But it really may just be trying to rival Trader Joe’s and Whole Foods.
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Coca-Cola’s consumers are making it pop, even if it costs them more. The beverage company reported better-than-expected first-quarter earnings on Tuesday, thanks in part to an increase in its prices.
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Cash-strapped consumers are not splurging on pizza and chicken, and that’s hurting sales at restaurant company Yum Brands. Meanwhile, its Taco Bell division is seeing just a slight jump in sales.
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Fast food restaurants in California have been increasing menu prices at a faster rate than anywhere else in the U.S. — and were doing so even before the state’s new minimum wage law went into effect, according to an analysis conducted by global food and beverage intelligence company Datassential. The new state law hiked the minimum wage to $20 on April 1.
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Cash-strapped consumers are flooding the aisles of discount grocer Aldi – giving it the boost it needs to emerge as a winner in the inflation era, the Wall Street Journal reported. The supermarket chain is seeing an increase in shoppers on the hunt for bargains.
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Shoppers are purchasing name-brand beauty products again, and that’s lifting sales at consumer goods company Unilever. Consumers are upping their purchases of Dove, Tatcha, and Vaseline products.
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Online fast-fashion retailer Shein will soon face stricter digital regulations from the European Union. Shein joins the ranks of Amazon, Meta, and TikTok, which are also on the trading bloc’s list.