Discounts Make a Comeback as Shoppers Get Picky About Spending
- With demand waning, retailers boost deals in threat to profit
- Second half expected to be “tougher” for pricing power
This article is for subscribers only.
US shoppers are getting increasingly hesitant about shelling out for shoes, appliances and other nonessentials. That has more retailers and consumer-goods makers reaching for an old tool to pry open their wallets: promotions.
Whirlpool Corp.’s revenue and earnings took a hit in the most recent quarter from discounts and special sales, which were rare during the pandemic as supply chains struggled to keep up with demand. Petco Health & Wellness Co. said it was using promotions to appeal to customers under rising financial stress. And Foot Locker Inc. told shoppers to expect deals.