ICYMI: Target, Walmart, and Other Grocery Chains Heed President Biden’s Call to Lower Prices
President Biden’s top economic priority is lowering costs for American families—including calling on grocery chains making record profits to lower prices. The President and his team have been meeting with CEOs and business leaders, including Target CEO Brian Cornell, to discuss the elevated costs that families face. Target, Walmart, and other grocery chains have begun to answer the President’s call to lower prices for household goods.
While Congressional Republicans side with special interests to keep prices high for consumers, President Biden is calling out price gouging and calling on other big corporations to join leaders like Target and Walmart to lower prices and give families more breathing room.
Read more below:
NBC News: Target lowering prices on 5,000 frequently bought items
[Rob Wile, 5/20/24]
Target said Monday it will lower prices on approximately 5,000 frequently bought items as it seeks to stay competitive amid signs consumers are experiencing price fatigue.
The company said in a statement that the price cuts are concentrated in grocery staples like milk, meat, bread, fruit and vegetables, as well as paper towels and diapers, with many cuts affecting its company-owned Good & Gather and Everspring brands.
It had already cut prices on some 1,500 other items.
Washington Post: Grocers are finally lowering prices as consumers pull back
[Jaclyn Peiser, 5/23/24]
In recent weeks, Target and Aldi have broadcast price cuts on thousands of items, while Walmart unveiled a new private label lineup of quality “chef-inspired food” mostly in the $5-and-under range. […]
This week, Target announced it would lower prices on roughly 5,000 items, including staples such as milk, produce, bread and coffee, as well as diapers and pet food. The reductions will “collectively save consumers millions of dollars this summer,” the company said in a news release.
The White House — which has been pressing retailers to lower prices — took credit for the rollbacks, posting on X: “President Biden called on grocery chains making record profits to lower prices for consumers — and they’re answering the call.”
Since the pandemic, the major chains have been operating at the highest profit margins on groceries in two decades, according to a study by the White House Council of Economic Advisers. An array of federal regulators, Democratic lawmakers and think tanks contend that large retailers have kept prices artificially high, allegedly through coercive tactics like price fixing and price gouging, and industry consolidation.
CNN: Walmart and Target are slashing prices. What does that mean for inflation?
[Crystal Hur, 5/23/24]
Americans might be noticing markdowns for some everyday essentials during their weekly grocery runs. That doesn’t mean the battle against inflation is won. […]
Now Walmart is taking things one step further. The superstore said on May 16 that it has rolled back prices on nearly 7,000 items in its stores, noting deflationary trends in general merchandise. Inflation during the first quarter increased at half the rate seen last year, it added. […]
On Monday, Target slashed prices on more than 1,500 items, ranging from laundry detergent to cat food to sunscreen, with thousands more price cuts expected over the summer. For example, the price of a pack of 16 Huggies baby wipes fell to 99 cents from $1.19 and roasted nuts from the Good & Gather brand now cost $5.29 from $6.89, according to a press release. […]
Other retailers including Ikea and Aldi have also reduced prices in recent months.
USA Today: Target latest retailer to start cutting prices for summer, with reductions on 5,000 items
[Emilee Coblentz, 5/20/24]
Target announced today that around 5,000 of its frequently shopped items will see prices reduced in the coming weeks. The prices on about 1,500 items have already been cut, and all the remaining price changes will be in place by the end of the summer.
“These price reductions will collectively save consumers millions of dollars this summer,” Target said in a news release, but it’s also a way for the retailer to stay competitive within the market.
Among the items discounted will be food products, Memorial Day items, things for Fourth of July fun and of course, back-to-school gear.
Money: Target Is the Latest Store to Go on a Price-Slashing Spree
[Adam Hardy, 5/21/24]
The box-store behemoth said Monday that it has already slashed prices on 1,500 popular products, including many grocery staples, with “thousands more price cuts” planned for the summer. In total, about 5,000 products will be discounted once the plan is in full effect.
ABC News: Aldi stores focusing on low grocery prices this summer, CEO says
[Yi-Jin Yu, 5/23/24]
Earlier this month, Aldi announced it would cut prices on over 250 summer essentials, including barbecue basics like chicken and steak and other family favorites like frozen blueberries and granola bars.
“It’s focused on, as you can imagine, fresh meat, snacks for the summer road trip and our fresh meat prices are lower than they were last year and our sales are up 30%,” Hart said, adding that low prices are part of the “DNA” of Aldi. “We’ve got our boneless, skinless chicken breasts at $2.19 a pound. Since we’ve marked that product down, it’s up 50% in movement and that’s just showing the popularity of low prices and the popularity of Aldi is as high as it’s ever been.”
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