Most shoppers are trading down, but a handful of brands are still raising prices without losing customers. According to The Motley Fool, a McKinsey report puts the share of consumers trading down at 79%. Against that backdrop, the publication highlights five companies it says still hold pricing power: Costco, Coca-Cola, On Holding, Starbucks and Procter & Gamble.
Pricing power means a company can charge more without curbing demand. For small-business owners, the numbers behind these five names are worth reading as a case study in what customers will still pay for when every purchase gets scrutinized. We covered a connected angle in Newspaper Business Sections: Who Still Writes the First Draft.
The pattern in the data is not subtle. Each of the five companies posted sales growth in its most recent reported quarter while holding or raising prices, per The Motley Fool. Here is what the figures show, company by company.
What does the trading-down data actually say?
The headline number comes from a McKinsey report cited by The Motley Fool: 79% of consumers are trading down. That means most shoppers are becoming choosier about how they spend, looking for cheaper alternatives or waiting for deals. In that climate, the publication argues, the companies that do not have to cut prices to generate sales are the ones worth watching.
That framing matters for anyone running a smaller operation. The question the data raises is simple: when nearly eight in ten customers are hunting for a discount, who can still sell at full price?
How is Costco growing while keeping prices down?
Costco is the outlier in the group, because its pricing power sits in the membership fee rather than the shelf price. The company raised that fee in 2025, from $60 to $65 for a standard membership and from $110 to $120 for an executive membership, according to The Motley Fool. Renewal rates and signups stayed strong anyway.
The quarterly numbers back that up. In its 2026 fiscal fourth quarter, which ended Aug. 30, total sales rose 11.2% year over year to $93.9 billion, driven by a 9.4% increase in comparable sales. Average ticket climbed 5.9%, but management said it is keeping prices down, which implies customers are simply buying more per trip. The article's read: shoppers lean into Costco harder when money is tight, to get the most from the membership.
Which brands raised prices and still grew sales?
Coca-Cola is the classic case. Sales rose 6% year over year in the second quarter, while earnings per share jumped 30% to $0.86, per The Motley Fool. Unit case volume was up just 1%, so higher pricing is doing most of the work of offsetting rising costs. The company has leaned on new marketing campaigns, smaller lower-cost packages and work with retailers to keep products in front of shoppers. It has also raised its dividend for 64 consecutive years.
On Holding shows what premium positioning looks like in the data. Second-quarter revenue rose 21.6% year over year on a currency-neutral basis, and 34.3% in its direct-to-consumer channels. Gross margin improved from 61.5% to 65.4%. The company has kept its prices and image intact, backed by ambassador deals with actress Zendaya and soccer star Kylian Mbappe, and told investors at its investor day that it expects to hold gross margins of 65% through 2029.
Starbucks is the turnaround story. Under CEO Brian Niccol, the company cut back on the specials that previous management had used so heavily they diluted the brand, The Motley Fool reports. In its 2026 fiscal third quarter, which ended June 28, global comparable sales rose 7.9% year over year, on a 4.2% increase in transactions and a 3.5% increase in average ticket. Earnings per share grew 86% to $0.91.
Procter & Gamble rounds out the group. Total sales rose 2% year over year in its 2026 fiscal fourth quarter, which ended June 30, with price increases contributing to sales growth in three of its five categories. The company is doubling down on premium positioning in brands like Pampers, Tide and Puffs rather than cutting prices, and has raised its dividend for 70 straight years.
What does this mean for small businesses?
The five examples point to a few repeatable patterns, drawn strictly from the reported figures:
- A locked-in customer relationship can carry a price increase. Costco raised membership fees in 2025 and kept strong renewals.
- Packaging and presentation can protect price. Coca-Cola paired higher pricing with smaller, lower-cost packages and grew sales 6%.
- Premium identity has to be defended. Starbucks cut discount specials under new leadership and saw transactions rise 4.2% anyway.
- Loyalty shows up in channel mix. On Holding's direct-to-consumer revenue grew 34.3%, faster than its overall 21.6%.
None of these outcomes is a promise that a smaller company can copy them. Each is one company's documented result. But the direction of the data is consistent: while 79% of shoppers trade down, the brands that kept pricing power did so by giving customers a reason to stay, not by matching every discount.
For owners watching their own customers get choosier, the useful question is not whether to cut prices. It is which of these five plays, membership lock-in, packaging, premium focus or direct relationships, fits the business they actually run. More coverage of how pricing and costs are moving sits in our Business News section, and the operating side of running lean is covered in our small business coverage. For related coverage, see What Does an SBA Loan Actually Cost a Small Business?.
