U.S. Consumers Shift Spending to Higher-Value Chains as Target Sales Rise 3.8%
Updated
Updated · CNN · Aug 19
U.S. Consumers Shift Spending to Higher-Value Chains as Target Sales Rise 3.8%
3 articles · Updated · CNN · Aug 19
Summary
Target’s comparable sales rose 3.8% in its latest quarter after roughly $5 billion in store upgrades and new brands, a sign shoppers are returning to chains that improve the experience.
Higher pay and frustration with shrinkflation, long waits and glitchy self-checkout are pushing Americans to favor businesses that offer better portions, service and store conditions over the lowest sticker price.
McDonald’s said its $1 and $2 value deals were falling flat as wait times grew, leaving last-quarter sales nearly flat and prompting a push into higher-quality chicken and brighter restaurants.
Burger King posted 8.5% sales growth after upgrading Whopper ingredients and plans to hire 60,000 workers, while fast-casual chains such as Cava and Chipotle also reported strength among lower-income diners.
Chili’s, with five straight years of sales gains and 5.6% growth last quarter, underscores the broader shift: consumers still want value, but increasingly define it as value plus experience.