$90 Cream and $10 Toothpaste: Companies Target Big Spenders

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There are some of the surprisingly high-priced offerings from companies that normally cater to middle-income shoppers. Here's why.

Retailers and consumer product companies felt justified in raising prices to offset higher costs from gnarled supply chains and Russia’s war in Ukraine last year. But as those financial pressures ease, some are looking for new ways to pump up sales and profits by focusing on premium items amid an overall sales slowdown.Sign up for NBC LA newsletters.

Walmart, for instance, features high-end $90 creams in its beauty aisles at select stores. Ketchup maker Heinz released a line of chef-inspired condiments called Heinz 57, including a 11.25-ounce container of infused honey with black truffle that costs roughly $7. Last year, Colgate-Palmolive made some waves by announcing its $10 three-ounce stain remover toothpaste, its first in the U.S. at this price, noting that premium products were essential to raising prices.

Some like Chipolte Mexican Grill have even publicized they are not pursuing discount-loving shoppers. The restaurant chain has been frank over the past year about how its price increases have scared off lower-income consumers. Last fall, it introduced Garlic Guajillo Steak, a limited-time offering that was pricier than regular steak.

Critics like Rakeen Mabud, chief economist at left-leaning The Groundwork Collaborative, believe such moves will only increasingly shut out the less economically fortunate. “The movie theater is and always has been a sacred democratic space for all and this new initiative by AMCTheatres would essentially penalize people for lower income and reward for higher income,” he wrote.Households with annual income of more than $156,000 make up 20.7% of the U.S. population, according to research firm GlobalData. However, they accounted for around 38.3% of all retail spending last year, up from 37.5% in 2021.

Luxury retailer Neiman Marcus is doubling down with special services and exclusive offerings for its multi-millionaire shoppers who shop an average of 25 times a year and spend upwards of $27,000 annually. For example, the store recently teamed up with designer fashion brand Brunello Cucinelli to have a fashion show at a local ranch outside of Dallas for its top customer.

 

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They still get locked up so it's a no from me.

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Companies target big spenders with $90 cream and $10 toothpasteToothpaste makers to beauty chains are adding more premium items like designer creams and services as they reach out to wealthier shoppers who are still...
Fonte: dallasnews - 🏆 18. / 71 Consulte Mais informação »