WSJ What’s News – "How Retailers Are Coping With Cautious Consumers"

Date: February 12, 2026
Host: Luke Vargas (The Wall Street Journal)

Main Theme

This episode examines how large retailers and consumer brands are navigating a complex economic landscape shaped by cautious, cost-sensitive consumers. Amid inflation and economic uncertainty, Americans are still spending—albeit more strategically—forcing brands to adapt with new pricing models, expanded private label offerings, and enhanced use of technology. The discussion draws on retailer earnings, industry insight, and expert commentary from Melissa Minkow (Global Director for Retail Strategy & Insights, CI&T) and others.

Key Discussion Points & Insights

Macro Retail Environment: A Tale of Two Worlds

• Mixed Signals in Consumer Behavior (07:42–08:39):
  • Companies like Kraft Heinz, Coca-Cola, and Unilever are facing a "fragile consumer economy."
  • Despite higher prices and ongoing inflation, overall American spending is not dropping.
  • Consumers are increasingly frustrated with high prices and focused less on brands and more on function.
    • Notable Quote:
      “Consumers are increasingly switching to lower cost items. They are increasingly frustrated with high prices and higher inflation. And that is a big challenge for the consumer conglomerates...”
      — Miriam Gottfried, 08:05

The Enigma of U.S. Consumer Spending

• Contradictory Signals (09:02-09:45):
  • Consumers profess concern about prices and say they’re cutting back, but spending data tells a different story.
  • Increased savvy and use of technology (apps, price comparison, etc.) is leading to more strategic purchasing—not necessarily less spending.
  • U.S. consumers differ from those in other countries (e.g., UK), where higher prices more directly dampen spending.
    • Notable Quote:
      “You have consumers in our survey telling us that they are pulling back on spend ... but then you look at the spending data and they are still spending, so it's not really discouraging them. What it's doing is making them much more strategic shoppers.”
      — Melissa Minkow, 09:02

Technology, Dynamic Pricing, and the Rise of Private Label

• Brands Get Nimble (10:57–12:10):
  • The rise of private label (store brands) is notable, as consumers trade down from premium products.
  • Retailers use AI and tech for dynamic, real-time pricing to adjust to market conditions.
  • Walmart, for example, changes prices at an item level in close to real time, giving them a competitive advantage.
  • Consumers are experiencing price changes through shelf digital screens, personalized promotions, and app-based updates.
    • Notable Quote:
      “Walmart, for example, has talked about how they've been changing prices at an individual item level in closer to real time and that's really beneficial for them. ... The more retailers implement that type of fluctuating dynamism with their prices, the more they can react in real time to the market and to the consumer needs.”
      — Melissa Minkow, 10:57

Profit Protection vs. Cost Cutting

• Private Label & Margin Strategy (11:59–12:32):
  • Brands are looking to private labels not just for cost reduction but for profit protection.
  • Sometimes, maintaining or even raising price points makes business sense if the data shows consumers will tolerate it.
    • Notable Quote:
      “A lot of times we think about [profit protection] as lowering the prices for the consumer in the moment. But sometimes it's not that, sometimes it's maintaining the higher price point or even lifting prices a little bit when you know the consumer is willing to, to pay more.”
      — Melissa Minkow, 12:10

Additional Noteworthy Segments

Broader News Context (00:31–07:11)

• Headlines included House rejection of Trump’s Canada tariffs, passage of strict voter ID legislation, international pressure and sanctions affecting Russian oil, and organizational changes at Elon Musk’s xAI after its merger with SpaceX.
• Highlights on company earnings: AB InBev’s growth in non-alcoholic beers, Hermes’ strong Christmas season, SoftBank’s AI investment gains.

Memorable Quotes

• On U.S. Retailers Coping With Change:
  “This consumer continues to be very aware of how expensive items are becoming, it's not necessarily meaning they'll pull all the way back. It's just meaning that as a retailer, you have to fight harder for them. You have to bring your A game.”
  — Melissa Minkow, 00:47

Noteworthy Moment

• Comparison with U.K. and Global Markets (10:02):
  • U.K. consumers decrease spending significantly during cost of living crises, while U.S. consumers maintain spend by shifting how they shop.

Key Timestamps

• 00:47: Introduction to cautious consumer theme—Melissa Minkow
• 08:05: Consumers are switching to lower cost items—Miriam Gottfried
• 09:02: Strategic, tech-enabled consumer behavior in the U.S.—Melissa Minkow
• 10:02: Global comparison—U.K. vs. U.S. consumer response
• 10:57: Pricing via AI and dynamic models—Melissa Minkow
• 11:49: Examples of tech-driven promotions, fluctuating prices
• 12:10: Profit protection through private labels—Melissa Minkow

Summary Takeaways

• American consumers are more cautious and strategic, but still spending amid economic unrest.
• Retailers adapt by leveraging technology: dynamic pricing, personalized offers, boosting private label offerings.
• The shift is less about reducing costs and more about protecting profit margins, sometimes even through selective price increases.
• The U.S. consumer’s resilience stands in contrast to stricter belt-tightening in other countries—a key dynamic influencing global retail strategies.