The Hustle Daily Show Will Walmart’s new premium groceries attract wealthier customers?
May 1, 2024
Big companies like Walmart are targeting wealthier shoppers with premium groceries while lower-income consumers feel the effects of inflation. McDonald's sales are down and Instagram is supporting smaller creators. The discussion covers strategies to attract different consumer demographics in the face of rising prices.
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Walmart Targets Wealthier Customers
- Walmart is launching a premium grocery line called Better Goods to attract wealthier and trendier shoppers.
- This move aims to compete with Whole Foods and Trader Joe's, appealing to customers less impacted by inflation.
Walmart vs. McDonald's Strategies
- Walmart and McDonald's are responding differently to consumer spending pressures amid inflation.
- Walmart seeks higher-end shoppers with premium products while McDonald's focuses on making its menu more affordable for existing customers.
The Premiumization Trend
- "Premiumization" is a growing trend where brands focus on higher-income groups to increase profit margins.
- Brands sell less but at higher prices to offset inflation impacts, which may hurt lower-income shoppers.