Walmart, $WMT, cut the number of sheets in its Great Value paper towel rolls from 168 to 120 but did not reduce the price
Inflation may be cooling, but consumers' outrage over higher prices remains intense.
TikTok users criticized Walmart for introducing digital shelf labels that allow for quick price adjustments. Wendy's retracted after its CEO suggested the chain might implement dynamic pricing, where prices fluctuate based on demand. At some Chipotle locations, customers filmed workers to ensure they didn't skimp on their burrito bowls.
These companies join a growing list of brands facing consumer frustration over high prices and fears of further increases. Many retailers, restaurants, and other consumer businesses have seen sales decline as shoppers reduce spending. Companies are now trying to convince customers they offer the best deals, leading to a surge in discounts, promotions, and value meals.
Consumers are tired of deceptive pricing, said Jean-Pierre Dubé, a marketing professor at the University of Chicago Booth School of Business. They've noticed smaller products on shelves, extra fees, and pressure to tip for services they didn't tip for before.
"We're reaching a boiling point on this," he said.
Companies argue that consumer perception is skewed. Grocery prices have risen just 1% in the past year, according to the U.S. Bureau of Labor Statistics. However, food-at-home prices have climbed over 24% since May 2019, stretching consumers' budgets and fueling anger at companies.
Consumers' buying power has increased as inflation cools and the job market remains strong, boosting real hourly earnings for the average private-sector worker, according to BLS data. Other rising costs, such as electricity and rent, have also strained Americans' finances.
"People experience the price of consumer products constantly, and that tends to be a focus of what they can remember buying last," said David Chavern, president of the Consumer Brands Association, a trade group representing companies like Coca-Cola and Procter & Gamble. "But the reality is that what's happening in the grocery store, in the drug store has not been a source of material inflation over the last 12 to 18 months."
A Pew Research Center survey from May found that 62% of U.S. adults viewed inflation as "a very big problem," a higher percentage than any other issue, including illegal immigration, gun violence, violent crime, and the federal budget deficit. This percentage has remained steady, even as inflation cools; a year ago, 65% of Americans considered inflation a very big problem.
Inflation has also become a major topic in the presidential campaign. Former President Donald Trump has blamed President Joe Biden, while Biden has accused companies of greed.