The trend: Although consumers keep spending, two prominent retail CEOs have recently noted that their purchases are changing as consumables squeeze out discretionary items.
Zooming out: The comments by Jelinek and McMillon reflect the fact that the current economic climate is unusual given that both consumer confidence and the unemployment rate are near all-time lows.
Costco and Walmart customers (and others) may be starting to recognize that they need to adapt their consumption patterns.
The opportunity: Costco and Walmart stand to benefit from the current moment given that they offer value-conscious customers a one-stop-shop where they can buy low-cost groceries, household essentials, and other products.
The big takeaway: Retailers that can effectively convey their ability to save consumers money stand to benefit from the current moment given that consumers are growing increasingly cost-conscious.
Go further: Read our The Power of Walmart report for more insights into the big box retailer’s growth strategies.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.