Several major U.S. retailers in cutting prices across the board, from snacks to toiletries and even Squishmallows, in an effort to lure back inflation-weary shoppers turned off by high prices.Retailers are feeling jittery after they jacked up prices as inflation spiked in recent years. But now, households aren’t shopping like they used to, and high prices are forcing Americans to choose between wants and needs. In the game of chicken between stores and shoppers, it’s the stores that finally appear to be yielding.That’s a problem not just for individual shoppers or even big retail chains but for the whole American economy, of which about two-thirds comes from consumer spending.Shoppers have pulled back for a year now as costs have risen 20% to 30% higher than they were three years ago and as incomes failed to keep up, said Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings.This is making consumers across income levels look for deals. “There’s just less dollars for consumers to spend,” Wyeth said. The challenge for retailers now is to shake consumers out of that frugal mindset, she added.In the past few weeks, Walgreens, Target, Walmart and Amazon slashed prices on thousands of household goods to rev up consumer spending. Here's a look at what consumers can expect:WalgreensPrices are dropping immediately on more than 1,500 items online and at its stores, which include both name and store brands, Walgreens announced Wednesday.For example, an 80-count One A Day gummy vitamins jar now cost $11.99, down from $13.49 and the price of a bag of sour cream and onion potato chips from the Walgreens-owned Nice! brand now costs $1.99, down from $2.79. For kids, the price of a 16-inch Squishmallow plush has gone from $24.99 to $20.“Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” said Tracey D. Brown, Walgreens’ retail president and chief customer officer, in a release. “We continue to be committed to our customers by lowering prices on over a thousand additional items, something we’ve been doing since October of 2023.”Walgreens Boots Alliance’s most recent earnings report, released in March, revealed that the retailers’ second-quarter sales beat expectations, but lowered its full-year earnings outlook because of a “challenging retail environment in the US.”Shares are down 40% year to date and its next earnings report isn’t expected until June. Meanwhile, a host of other retailers report earnings Thursday, including Dollar General and Costco.Amazon FreshThe price cuts include meat, seafood, frozen food, dairy and cheese, beverages, snacks and pastas, the retailer told CNN Friday. The discounted food items will include national brands and Amazon’s private label products.“Increasing our weekly deals across thousands of items and expanding the reach of Prime Savings at Amazon Fresh is just one way that we’re continuing to invest in competitive pricing and savings for all of our customers – both in-store and online,” Claire Peters, worldwide vice president with Amazon Fresh, said in a statement.For Prime members, Amazon Fresh is stacking more savings by offering a 10% discount on hundreds of online grocery items.TargetTarget this week slashed prices on more than 1,500 popular items, ranging from butter to laundry detergent, in its attempt to pull in more shoppers. It said Target shoppers can expect “thousands more price cuts” — amounting to 5,000 items — being reduced over the summer and that its lower prices aim “collectively save consumers millions of dollars” on household staples and everyday items such as milk, fresh fruit, diapers and even pet food.WalmartThe nation’s largest retailer expanded its price rollbacks — temporary discounts that can last a few months — to nearly 7,000 grocery items, a 45% increase. Items include a 28-ounce can of Bush's baked beans marked down to $2.22, from $2.48, and a 24-pack of 12-ounce Diet co*ke priced at $12.78 from $14.28.Company executives said the Bentonville, Arkansas-based retailer is seeing more people eating at home versus eating out. Walmart believes its discounts will help the business over the remainder of the year.“We’re going to lead on price, and we’re going to manage our (profit) margins, and we’re going to be the Walmart that we’ve always been,” CEO Doug McMillon told analysts earlier this month.
Several major U.S. retailers in cutting prices across the board, from snacks to toiletries and even Squishmallows, in an effort to lure back inflation-weary shoppers turned off by high prices.
Retailers are feeling jittery after they jacked up prices as inflation spiked in recent years. But now, households aren’t shopping like they used to, and high prices are forcing Americans to choose between wants and needs. In the game of chicken between stores and shoppers, it’s the stores that finally appear to be yielding.
That’s a problem not just for individual shoppers or even big retail chains but for the whole American economy, of which about two-thirds comes from consumer spending.
Shoppers have pulled back for a year now as costs have risen 20% to 30% higher than they were three years ago and as incomes failed to keep up, said Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings.
This is making consumers across income levels look for deals. “There’s just less dollars for consumers to spend,” Wyeth said. The challenge for retailers now is to shake consumers out of that frugal mindset, she added.
In the past few weeks, Walgreens, Target, Walmart and Amazon slashed prices on thousands of household goods to rev up consumer spending. Here's a look at what consumers can expect:
Walgreens
Prices are dropping immediately on more than 1,500 items online and at its stores, which include both name and store brands, Walgreens announced Wednesday.
For example, an 80-count One A Day gummy vitamins jar now cost $11.99, down from $13.49 and the price of a bag of sour cream and onion potato chips from the Walgreens-owned Nice! brand now costs $1.99, down from $2.79. For kids, the price of a 16-inch Squishmallow plush has gone from $24.99 to $20.
“Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” said Tracey D. Brown, Walgreens’ retail president and chief customer officer, in a release. “We continue to be committed to our customers by lowering prices on over a thousand additional items, something we’ve been doing since October of 2023.”
Walgreens Boots Alliance’s most recent earnings report, released in March, revealed that the retailers’ second-quarter sales beat expectations, but lowered its full-year earnings outlook because of a “challenging retail environment in the US.”
Shares are down 40% year to date and its next earnings report isn’t expected until June. Meanwhile, a host of other retailers report earnings Thursday, including Dollar General and Costco.
Amazon Fresh
The price cuts include meat, seafood, frozen food, dairy and cheese, beverages, snacks and pastas, the retailer told CNN Friday. The discounted food items will include national brands and Amazon’s private label products.
“Increasing our weekly deals across thousands of items and expanding the reach of Prime Savings at Amazon Fresh is just one way that we’re continuing to invest in competitive pricing and savings for all of our customers – both in-store and online,” Claire Peters, worldwide vice president with Amazon Fresh, said in a statement.
For Prime members, Amazon Fresh is stacking more savings by offering a 10% discount on hundreds of online grocery items.
Target
Target this week slashed prices on more than 1,500 popular items, ranging from butter to laundry detergent, in its attempt to pull in more shoppers.
It said Target shoppers can expect “thousands more price cuts” — amounting to 5,000 items — being reduced over the summer and that its lower prices aim “collectively save consumers millions of dollars” on household staples and everyday items such as milk, fresh fruit, diapers and even pet food.
Walmart
The nation’s largest retailer expanded its price rollbacks — temporary discounts that can last a few months — to nearly 7,000 grocery items, a 45% increase. Items include a 28-ounce can of Bush's baked beans marked down to $2.22, from $2.48, and a 24-pack of 12-ounce Diet co*ke priced at $12.78 from $14.28.
Company executives said the Bentonville, Arkansas-based retailer is seeing more people eating at home versus eating out. Walmart believes its discounts will help the business over the remainder of the year.
“We’re going to lead on price, and we’re going to manage our (profit) margins, and we’re going to be the Walmart that we’ve always been,” CEO Doug McMillon told analysts earlier this month.
)
