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the big retailers haven't reported yet but the smaller ones have already taught us an important lesson if you're trying to get away with maintaining high prices here you're going to lose customers very few operators are ever willing to admit their prices are just too darn high if you acknowledge it without doing anything about it you're setting yourself up for disappointing numbers going forward bye bye bye no it's not easy to figure out who can get away with keeping prices higher Chipotle pulled it off because customers think it's worth it something you hardly ever see we heard Brinker the parent of Chili's tell us about the success they've had with what they call barbell strategy offering lower price items for more value conscious consumers and premium items for more affluent customers Kos to CEO Kevin Hawkman for not making an either or proposition that was a good idea his stock keeps going higher now yum stock got hit because it wasn't but it wasn't because of Taco Bell they offered some outrageously cheap food the Cravings value meal with 10 items under three bucks that looks like a did great some of the other divisions not as good but McDonald's failed the test because in my opinion the burgers now cost too much they just gone up in price so much in 2019 so they don't come off as a bargain something that the home office has to know but the franchise seem reluctant to admit I know Starbucks disappointed their coffee might be too expensive which is saying something because it was always pretty expensive but nobody seems willing to own that idea there's disappointment all around including from former CEO Howard Schultz not on the board though I'm not hearing anyone talk about rolling back prices at Starbucks they just seem to want to add more menu items which I think would actually lead to worse throughput another unacknowledged problem among many owning this one for the travel trust has been nothing short of a brutal experience what else okay this morning Tyson Food said prepared Food business which is seen 20% cumulative inflation over the last three years has now become too pricey for many Americans causing the company to struggle with the journeys that's why that one was hit so what does all of this tell us as we head into retail earning season I think the takeaway is that Americans want what Walmart and cost go give them a very low price that rolls back their own house Brands to levels that feel like Bargains again Walmart's created a new version of its own brands that offers less expensive prices Costco has always been a bargain I think both will do well now I'm not sure how the market will react to Target Macy's or Nordstrom Target as those terrific house bands they billions of dollars they sell but they and they do offer real value but I don't know if that's enough given how much the stock is run that said Target yields almost 3% I bet it'll be viewed as enough of a bargain that people will be thrown to it norom with the idea of going private but I wonder whether it has the cash flow to get a deal done Macy's I find is the most intriguing they've added two board members uh at the suggestion of a Suitor arcast the question is does that end a possible $24 takeover bid that had been widely talked about you know it's really not clear but I do know this if it weren't for the activist muddying the story I think the company has made a case for affordable luxury with Bloomingdales and current CEO Tony spring who hails from the blooming sales division I'm guessing Macy's will be given some time here to work some magic last of the two dollar stores they're very confusing Dollar Tree and Dollar General these two are known for lower prices but what people think they're as cheap as the prices at Walmart or Costco is the price of Costco's membership too high for the dollar store shoppers that's what I'm thinking well anyway it nuts out to be cheaper if you can afford The Upfront payment believe me hey you know what so does Walmart but the dollar stores are always able to offer something that can match or exceed Walmart when it comes to lower prices on individual items hey here's a real audity William Sona reported excellent numbers and it's certainly not the cheapest in this category that's way fair but like Chipotle William S is regarded as a high quality brand and that's what people want in the end I think retail is still the ugly duckling versus travel Leisure people don't want to spend money on physical items unless they have to but even then they're going to be more frugal even if it means getting a lower quality hamburger or a latte I like to say there's always a more Market somewhere I promise i' find it just for you right here M money I'm Jim Cramer see you tomorrow last B Starts Now
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