Target, Walmart, and Amazon Fresh are the latest grocery chains in the U.S. to lower prices, after Southeastern Grocers and Giant Food announced initiatives to lower prices this spring.
Walmart said it rolled back prices on nearly 7,000 items in its stores.
"Our combination of everyday low prices, plus a large number of rollbacks, is resonating,” Walmart CEO Doug McMillon said on the company’s Q1 2024 earnings call, according to CNN.
While food price inflation has declined since last year, Walmart US President and CEO John Furner acknowledged years of rising prices are taking a toll on U.S. consumers, as well as the company’s bottom line. Furner said consumers’ financial strain has especially dampened the market for luxury products, including some seafood items.
“The nagging problem is stubborn food inflation that has been high over the last few years,” Furner said during the National Retail Federation’s 2024 State of the Retail and the Consumer event.
Target also recently announced that it will lower prices on around 5,000 frequently shopped items across its stores. The retailer has already reduced prices on about 1,500 items, with thousands more price cuts planned to take effect over the course of the summer, Target said.
"We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more," Target Executive Vice President and Chief Food, Essentials, and Beauty Officer Rick Gomez said. "Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers who shop Target each week for their everyday needs.”
Target did not specify which of its seafood products would see lower pricing and did not respond to a request for clarification from SeafoodSource.
Gomez told the Associated Press Target is seeing deflation in some foods such as meat, seafood, and eggs but is still seeing inflation in dry packaged goods, such as candy.
In order to stretch their budgets, some shoppers are seeking the lowest prices in each category, while others are looking for larger value packs and private-label products, according to Gomez. As a result, Target is seeing growth in its own brands, including Good & Gather, Favorite Day, and Market Pantry.
Amazon Fresh will also be discounting prices up to ...
