Pepsi and Delta say consumers are hunting for value
Post-pandemic consumer splurging is rapidly coming to a halt, according to two widely followed U.S. companies — more evidence that the U.S. economy is likely in for a period of slower economic growth.
Post-pandemic consumer splurging is rapidly coming to a halt, according to two widely followed U.S. companies — more evidence that the U.S. economy is likely in for a period of slower economic growth.
Pepsi and Delta Air Lines both offered subdued financial outlooks as they reported quarterly earnings Thursday, and both cited the same reason: Customers are now becoming more value conscious, after years of struggling with elevated costs.
"The impacts of persistent inflationary pressures and higher borrowing costs over the last few years have resulted in tighter household financial conditions," Pepsi said Thursday in a statement.
As a result, the company said, consumers have become more price sensitive across its entire range of products.
Delta CEO Ed Bastian echoed the sentiment in explaining his company's lower outlook for the rest of the year.
Rating: 5