When CEOs Say Customers Are Broke, It's Time to Change Your Message

You know things are getting rough when Walmart's CEO is basically saying "our customers are stressed" and the Kraft Heinz boss flat-out tells analysts that people are "literally running out of money at the end of the month."

Welcome to now, where consumer sentiment just hit a record low of 44.8 according to the University of Michigan's latest survey. That's down from 49.8, which wasn't exactly party time either.

The numbers tell a story that feels familiar to anyone who's been grocery shopping lately. According to Joanne Hsu, director of the University of Michigan's consumer survey, "57% of consumers spontaneously mentioned that high prices were eroding their personal finances, up from 50% last month." Meanwhile, credit card balances are sitting pretty at a record high of $1.25 trillion, per the Federal Reserve Bank of New York.

THE REALITY CHECK FROM CORPORATE AMERICA

It's not just Kraft Heinz sounding the alarm. Walmart reported sales growth, but here's the kicker — it was driven by private label goods and higher-income households trading down to stretch their budgets. John Furner, Walmart's CEO, told analysts this week: "When I look at the consumer, especially here in the U.S., they're telling us they're feeling some pressure, and they're looking to Walmart for value."

Target's CFO echoed the sentiment: "While consumers have proven to be resilient so far, sentiment has been declining recently and we're keeping a close eye on their spending behavior."

When even the value retailers are worried about their customers' wallets, that's your cue to pay attention.

WHAT THIS MEANS FOR YOUR PR STRATEGY

Time for a messaging reality check. If your brand is still pushing aspirational lifestyle content while people are choosing between gas and groceries, you're reading the room wrong.

Right now, empathy beats aspiration every single time. The only thing consumers are aspiring to is making it through the month without maxing out another credit card.

Here's what works in this environment:

• Lead with value, not features. Don't tell me about your premium experience — tell me how you're going to help my budget.
• Frame everything as genuine help. Position your products and services as solutions for real financial pressure, not clever ways to separate people from money they don't have.
• Ditch the luxury messaging. Unless you're specifically targeting the top 10% of earners, premium positioning is going to feel tone-deaf.
• Be authentic about the help you're offering. People can smell opportunistic "value" messaging from a mile away. Make sure you're actually delivering on affordability, not just talking about it.

The consumers who are getting hit hardest — lower-income households and those without college degrees — posted the biggest sentiment declines, according to Hsu's research. These aren't niche audiences. This is a significant chunk of the market telling you they're financially exhausted.

THE BOTTOM LINE

When major retailers are essentially saying their customers are tapped out, and consumer sentiment is hitting record lows, it's time to adjust your tone. Save the aspirational messaging for when people aren't choosing between heating bills and dinner out.

Smart communicators are already shifting to messaging that acknowledges financial pressure and offers genuine solutions. The brands that figure this out first are going to build serious loyalty with consumers who will remember who helped them when times got tough.

Need help recalibrating your messaging for today's economic reality? Winsome Marketing specializes in helping brands find their voice when the landscape shifts. Let's talk about messaging that actually connects.

This post was originally inspired by The Scoop: Companies sound the alarm as consumer sentiment plunges to new low via prdaily. We encourage you to read the original piece for full context.