Consumers are ‘running out of money’ and cutting back, CEOs warn
The Seattle Times • • business
Key Points:
- Executives in retail, restaurants, and packaged goods are increasingly concerned about U.S. consumers facing tighter budgets due to surging gas prices linked to the Middle East conflict.
- Kraft Heinz CEO Steve Cahillane highlighted that lower-income shoppers are running out of money and dipping into savings, signaling negative cash flows in this demographic.
- Whirlpool and fast-food companies like McDonald’s report declining consumer confidence and demand, with industry impacts comparable to the global financial crisis.
- Sit-down dining chains such as Applebee’s and IHOP are experiencing reduced visits from price-sensitive customers, while younger shoppers at retailers like Warby Parker face challenges from unemployment and student debt.
- Experts warn that prolonged high gas prices will force consumers to alter spending habits beyond tapping savings or credit, potentially reducing discretionary expenditures like dining out.
