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May 22 - CEOs bragged they could charge higher prices. Customers are now pushing back



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 1 month ago '17        #1
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Ifeellikekobe  topics gone triple plat - Number 1 spot x7
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May 22 - CEOs bragged they could charge higher prices. Customers are now pushing back
 

 
-Target and Walmart each missed recent earnings estimates, due in part to softer sales.

-Each attributed part of the slowdown to rising prices — within and outside their stores' walls.

-After months of CEOs and CFOs bragging about pricing power, it seems that customers have had enough.


HOMEPAGE
HOME RETAIL
CEOs bragged for months about how they could charge higher prices. Customers are now pushing back.
Dominick Reuter May 20, 2022, 11:32 AM
Grocery shopping Washington DC inflation
Kelly Hayes looks at produce that is on sale as she shops at Whole Foods Market in the Tenleytown neighborhood on Thursday April 28, 2022 in Washington, DC. Matt McClain/The Washington Post/Getty Images
Target and Walmart each missed recent earnings estimates, due in part to softer sales.
Each attributed part of the slowdown to rising prices — within and outside their stores' walls.
After months of CEOs and CFOs bragging about pricing power, it seems that customers have had enough.
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Until somewhat recently, CEOs and CFOs had been touting their ability to boost prices for consumers above and beyond the amount needed to offset growing labor and supply chain expenses.

"What we are very good at is pricing," Colgate-Palmolive CEO Noel Wallace told investors back in October. "Whether it's foreign exchange inflation or raw and packing material inflation, we have found ways over time to recover that in our margin line."

Wallace was far from alone: Similar statements from executives soon became a political argument that attempted to pin the blame for record high inflation squarely on corporate greed.

Of course, companies fundamentally exist to make money, and maximizing profits is not necessarily the same as price gouging, but recent earnings calls from major US retailers Target and Walmart suggest that companies boosting their margins may have overplayed their hands.

It should be noted that while Target and Walmart themselves resist this trend (Target CEO Brian Cornell calls consumer pricing "always the last lever we pull"), they have to sell products on behalf of other companies who have been more eager to charge customers more.

In Walmart's earnings calls, executives said they saw inflation shaping customer choices more in the previous quarter than they had seen before. That meant increasingly spending less on merchandise and more on food, and choosing store brands over name brands.

Target also saw sales of its in-house brands grow faster than overall sales, continuing a years-long trend. The company was also more willing to take a hit to profits with discounts and deals, bucking a
retail industry
trend of offering fewer promotions.

"While these were difficult decisions, we believe they'll pay off in the long term, given that building long-term loyalty remains our top priority," Chief Growth Officer Christina Hennington said.

Meanwhile Amazon, which is dealing with its own inflation headaches, told investors last month that consumer demand has remained strong even with prices climbing faster than they have in a generation.

"But we're wary of it, as probably all companies are, because household budgets are tightened when fuel costs are doubling," Amazon CFO Brian Olsavsky said. "It ripples through food. It ripples through everything else."

Both Target and Walmart indicated there would likely be price increases in coming months, but Cornell said they would be done "surgically" at Target.

"Not all of [our customers] can afford to absorb this and they need our help," Walmart CEO Doug McMillon said.

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42 comments
 

 1 month ago '16        #2
Stryder 
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No not CEOs I'm told to blame Biden what is it
+40   

 1 month ago '11        #3
Sin  topics gone triple plat - Number 1 spot x51
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im still buying the same brands I always buy, I've cut back on driving to the major retail stores because of gas prices and prefer to pay the high prices at the smaller mom and pop grocery stores I can walk or bike to



Last edited by Sin; 05-22-2022 at 05:04 AM..
+33   

 1 month ago '20        #4
Bighempin  topics gone triple plat - Number 1 spot x1
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Gotta wise up its the American Oligarchs that got us by the short and curlies!


Last edited by Bighempin; 05-22-2022 at 08:39 AM..
+28   

 1 month ago '21        #5
Tlatoani  topics gone triple plat - Number 1 spot x1
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Been increasing my shopping at Trader Joe's and Aldi.
+32   

 1 month ago '21        #6
Authentic704 
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I'm start shooting these squirrels that be in my yard and see what that be like... I heard Squirrel dumplings is good
+19   

 1 month ago '06        #7
Verdict  topics gone triple plat - Number 1 spot x2
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 Stryder said
No not CEOs I'm told to blame Biden what is it
I was also told to blame Biden for the our unprecedented high gas prices































Last edited by Verdict; 05-22-2022 at 03:13 PM..
+21   

 1 month ago '15        #8
Lockwind 
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fu*k biden

 1 month ago '13        #9
North!!!  topics gone triple plat - Number 1 spot x12
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Joe Byron take me out to dinner

Bing Bong
+7   

 1 month ago '10        #10
bunun  topics gone triple plat - Number 1 spot x2
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caught some snapper, red fish, and speckled sea trout, but I aint filling up the tank on the boat to full anymore lol

regret selling my kayak
+16   

 1 month ago '15        #11
Teddy KGB 
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 Ifeellikekobe said
HOMEPAGE
HOME RETAIL

Matt McClain/The Washington Post/Getty Images


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If you’re going to cut/paste an article at least have the decency to remove the advertisement text or image credits.
+31   

 1 month ago '15        #12
biggydski 
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Only ceo that has any bragging power in today's society is the ceo of Arizona Ice Tea. Hasn't increased price and still making profits
+39   

 1 month ago '11        #13
SomeOnesoN  topics gone triple plat - Number 1 spot x3
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 Tlatoani said
Been increasing my shopping at Trader Joe's and Aldi.
I have to drive the extra 20-30 miles to shop at WinCo rather than the grocery stores in my area. A pound of sliced ham at savemart is $10.99, while it's like $5.99-$6.99 at WinCo. That sh*t adds up.
+9   

 1 month ago '06        #14
ehizzy3  topics gone triple plat - Number 1 spot x1
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 SomeOnesoN said
I have to drive the extra 20-30 miles to shop at WinCo rather than the grocery stores in my area. A pound of sliced ham at savemart is $10.99, while it's like $5.99-$6.99 at WinCo. That sh*t adds up.
Winco is clutch. It’s also employee owned and while the pay isn’t really great (it’s still a grocery store) full time employees get pretty good benefits

At least that’s how it was
+6   

 1 month ago '12        #15
daman729 
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Good. Tired of these greedy fu*ks!! Don't get me wrong. Business is business and sometimes you gotta charge more to keep companies finances right. But a lot of this sh*t is greed and not true inflation.

The corporate world is a cold a*s place!!! All them smiles and sh*t mean nothing in many cases.
+14   

 1 month ago '10        #16
beast mode  topics gone triple plat - Number 1 spot x2
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 daman729 said
Good. Tired of these greedy fu*ks!! Don't get me wrong. Business is business and sometimes you gotta charge more to keep companies finances right. But a lot of this sh*t is greed and not true inflation.

The corporate world is a cold a*s place!!! All them smiles and sh*t mean nothing in many cases.


suuuure it's not "true inflation" businesses wouldn't need to wait for now to push up prices, they could have always done that at any point. it's no coincidence that forecasters all saw this coming and what do ya know, it happend.

muhfu*kas that never ran a fu*kin tshirt shop trynna act like they know what goes into running fortune 500 companies
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 1 month ago '16        #17
Ghostface Killa  topics gone triple plat - Number 1 spot x1
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 Stryder said
No not CEOs I'm told to blame Biden what is it
How about both?




Inflation is always the result of multiple inputs


You can toss the fed in the blame pot as well.


Hell, why stop there? Let's make sure big banks and Wallstreet buying up single family homes gets their well deserved target in the witch-hunt too.


Until the public starts calling these jokers out and holding them accountable nothing will change.


Everyone who is responsible needs reproach... we not playing the trade game where one gets off because another got caught.
+8   

 1 month ago '05        #18
Dun Language  topics gone triple plat - Number 1 spot x17
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vote trump 2024 brothers
-6   

 1 month ago '12        #19
daman729 
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 beast mode said


suuuure it's not "true inflation" businesses wouldn't need to wait for now to push up prices, they could have always done that at any point. it's no coincidence that forecasters all saw this coming and what do ya know, it happend.

muhfu*kas that never ran a fu*kin tshirt shop trynna act like they know what goes into running fortune 500 companies
And mothafu*kas like you are obviously clueless. Corporate greed is real, period. All this sh*t isn't true inflation just like I said. And I stand by it.
+3   

 1 month ago '16        #20
seatownslayer  topics gone triple plat - Number 1 spot x7
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Biden told me to take a ppp loan... he the worst.. fu*k that guy. I know for sure if add name here was voted in we would be way better off... i got compete faith is this system that I have no say in once I vote a person in office... I love how the money can shape their action and my country into a business instead of a government. A government for tthe people and make sure the money it collects is in the peoples best interest.... yeah man fu*k Biden he did all this sh*t... he is the worst I've ever seen. And nothing like any other president before him... it for sure has nothing to do with how America is no diffent from the kings and queens days but nows its the rich and not... yeah man fu*k biden... ever place in history is Biden fu*king fault

Like I said in another thread we need rent and food control laws where you can5 charge over for per square foot to live and disme foods like eggs potatoes and basics can go over a price per pound ever.... but instead they want to cut gas prices a lil
So you can barely afford to make it to work to survive its this sh*t lool.and barely survive week to week... yeah fuxk you biden.. we know you did this all in less the n two years .... cuz it sure isn't the system.


Last edited by seatownslayer; 05-22-2022 at 05:17 PM..
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 1 month ago '10        #21
beast mode  topics gone triple plat - Number 1 spot x2
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 daman729 said
And mothafu*kas like you are obviously clueless. Corporate greed is real, period. All this sh*t isn't true inflation just like I said. And I stand by it.


this idiot said "and i stand by it"

"i like sports and that's it" iykyk


Last edited by beast mode; 05-22-2022 at 05:30 PM..
-1   

 1 month ago '11        #22
Tony Franks  topics gone triple plat - Number 1 spot x2
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 Verdict said
I was also told to blame Biden for the our unprecedented high gas prices



So we dont blow up all those brown people to pay the same oil prices as the rest of the world
+3   

 1 month ago '15        #23
Lockwind 
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 Dun Language said
vote trump 2024 brothers
Should’ve done that 4 years ago


I’m voting for him every election
All th is bullsh*t wouldn’t happen under his watch
-5   

 1 month ago '10        #24
Billy Hoyle 
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 Dun Language said
vote trump 2024 brothers
Lmfao. So we can have another riot at our capital.
+5   

 1 month ago '11        #25
Trolling 
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 biggydski said
Only ceo that has any bragging power in today's society is the ceo of Arizona Ice Tea. Hasn't increased price and still making profits
This person should run for president.
+3   



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