Parts of corporate America are swallowing margins to keep people spending.

• 💸 Chains like McDonald's, Target, Kohl's and Pizza Hut are slashing certain prices, expanding deals and leaning on subsidies — early proof that brands are willing to trade profit for traffic.
• Deep deals can ding profit margins, but chains are betting sharper entry prices will bring people back through the door.

🛒 Zoom in: Target is pushing low-price private store brands and keeping its $1/$3/$5 bins, while Kohl's is widening coupon eligibility.

• 🍔 McDonald's will reportedly cut combo meal prices 15% across the country in September with franchisee subsidies.
• 🍕🍝 And Pizza Hut is launching $5 "Crafted Flatzz" before 5pm, while Olive Garden is reviving its Never Ending Pasta Bowl at the same price since 2022.

📉 The big picture: Lower-income households are disproportionately trading down or pausing spend, forcing companies that drifted upmarket during the inflation surge to reset price points and reposition value.

• "Offering more value options on the menu is a way of course correcting," GlobalData analyst Neil Saunders tells Axios.

Yes, but: Deals won't be found everywhere. For many businesses, the pricing dam is already cracking under tariffs — companies are raising prices, or signaling that increases are coming, Axios' Emily Peck and Joann Muller write.

Go deeper

Target's longtime CEO is leaving his post amid a prolonged slump for the retailer.

• 🤔 Target, one of the nation's largest retailers, has been struggling to find its groove on prices and merchandising as shoppers look elsewhere for both.

Driving the news: Brian Cornell — who invested in private-label brands, remodeled Target stores and expanded the big-box chain's online sales — will step down as CEO and become executive chair on Feb. 1.

• 20-year company veteran Michael Fiddelke, currently serving as chief operating officer, will succeed him.

📉 The impact: Target stock closed down more than 6%.

• "Investor sentiment has been mixed as Fiddelke does have an impressive 20-year tenure at TGT but also no prior CEO experience," TD Cowen analyst Oliver Chen wrote today.

Go deeper

"If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment."

🚙 Hertz plans to sell used vehicles from its rental fleet via Amazon Autos. The company has been reeling from a bad bet on EVs. (CNBC)

💉Novo Nordisk is freezing hiring for noncritical positions. The maker of Ozempic and Wegovy is facing intense competition from fellow GLP-1 maker Eli Lilly. (Fierce Pharma)

👛 Fashion brand Guess plans to go private in a deal arranged by Authentic Brands and the co-founders and CEO of Guess. The Authentic Brands lineup includes Reebok, Champion, Aeropostale and Dockers. (Bloomberg)

Google today announced its latest crop of Pixel smartphones, accessories and an AI-powered health coach, Axios' Ina Fried writes.

• 🐝 With an earlier-than-usual launch, Google aims to gain some buzz ahead of Apple's expected iPhone announcement next month.

🔎 The Pixel 10 family includes a standard model, two sizes of the Pro model as well as the Pixel 10 Pro Fold, a modest update to last year's foldable.

• All of the devices include Google's newest Tensor processor, the latest on-device Gemini nano AI model and Qi2 wireless charging.

🏷️ By the numbers: The Pixel 10 starts at $799 and includes a 6.3-inch display and a three-lens rear camera, including a 5x optical zoom, a first for the base model.

• ⛑️ Google also debuted an AI-powered health coach that will launch in October as part of its Fitbit premium service. Google is touting it as a combination of a fitness trainer, sleep coach and health adviser.