Yahoo Finance Retailers Are Struggling With Cautious Consumers — These 3 Stores Are Offering Extreme Bargains
Consumers have become increasingly cautious about their spending due to a confluence of factors. Sticky inflation, soaring rates and the resumption of student loan payments have all taken a toll on many Americans’ wallets.
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And the numbers speak for themselves: A recent Allianz Life survey found that 69% of Americans have not been able to “contribute to their savings as much due to ongoing inflation,” 51% have “taken on more debt because of inflation” and 67% are “more concerned about paying bills than about their financial future.”
So, against this backdrop, it may come as no surprise that many retailers are offering extreme bargains to attract financially stretched consumers.
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Big Lots CEO Speaks Out
Big Lots CEO Bruce Thorn said the retail giant plans to focus on “extreme bargains” to attract consumers, according to a Seeking Alpha transcript of the March 7 earnings call.
“These extreme bargains create a more exciting treasure hunt experience which will keep our customers coming back to our stores and help drive comparable sales growth,” he said on the call.
And Big Lots is planning on these extreme bargains to be the majority of its sales, growing them to 75% of the overall sales.
Some of these so far have included food offerings, such as coffee and cereal, as well as hair care, bedding, laundry and cookware, he added on the call.
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Target Making Efforts To Refocus on Budget-Minded Demo
Target is also making efforts to attract and retain budget-minded consumers. As such, in February, the retail giant introduced “dealworthy” — a Target owned brand that features low prices on 400 everyday items, including “apparel and accessories, essentials and beauty, electronics and home items,” according to a press release.
Dealworthy prices start at less than $1, with most items being priced under $10. In the electronics department, some items — such as phone cases — “will be priced 50% lower than any other brand sold at Target.”
Target said it would introduce new products throughout 2024 and 2025.
Sam’s Club Still Offering Prime Bargains
When exploring retailers offering exceptional bargains in this climate of cautious consumers, Sam’s Club surely takes the lead, according to Brandon Hartman, founder of online retailer BeyWarehouse.
“With a presence in nearly every state, this membership-only wholesale chain is a haven for shoppers seeking deals on a myriad of offerings, including fresh and packaged foods, household goods, electronics, and clothing, among other categories, all sold in convenient bulk quantities,” he added.
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This article originally appeared on GOBankingRates.com: Retailers Are Struggling With Cautious Consumers — These 3 Stores Are Offering Extreme Bargains
