Companies and retailers finally cut prices in response to U.S. consumer frustration and lack of cash

U.S. companies are finally taking American consumer frustration over inflation and high prices seriously. "Companies from Clorox to Kraft Heinz are finally realizing that half of American consumers can’t afford what they are selling," report Sarah Nassauer, Heather Haddon and Natasha Khan of The Wall Street Journal. 

Kraft Heinz has lower prices on several popular
grocery items.

For the food industry and retailers, having half of the U.S. population — roughly 180 million Americans — struggle to put food on the table isn't good for business, even when those businesses are making money. The Journal reports, "To appeal to cash-strapped and inflation-weary shoppers, the companies are launching smaller and cheaper products, pitching value packages and, in some cases, reversing price increases."

Companies like Target, Walmart and Coca-Cola are aiming their deals at lower-income Americans who are being squeezed by gas prices, food inflation and wages that aren't keeping up with costs. "Walmart executives said that they had lowered the price tag on 7,200 items and planned to use the company’s tariff refund to fund further price cuts."

Kraft Heinz has reduced prices on several of its staple products, including Oscar Mayer Deli Fresh products and Maxwell House coffee. It plans to "absorb about 80% of its inflation this year," Nassauer adds. The company's CEO, Steve Cahillane, told the Journal, “The consumer can only absorb so much.”

Target's lower toy prices have increased
sales. (Target photo)

Even car companies have gotten the memo. "Jeep maker Stellantis, which also makes Ram trucks and Chrysler minivans, is planning seven new cars 'under the $40,000 range,'" Nassauer writes. It's also planning for two new car models that will retail for under $30,000.

Several companies that voluntarily slashed prices are seeing sales volumes increase. Target’s successful toy department price cuts are an example. In a recent meeting, the company told investors that "it is experiencing 'tremendous growth' in its toy department, where it has introduced offerings priced at $20 or less," the Journal reports.