Big stores slash prices to win back grocery shoppers

After years of rising prices, it’s a welcome change. Grocery prices are 25% higher than they were at the start of 2020, according to the latest consumer price index, but they actually fell slightly in April from the previous month.

Shoppers have persevered through these years of high prices by switching retailers, brands or other qualities of the food they buy, says Joe Balagtas, a professor of agriculture economics and interim director of the Center for Food Demand Analysis and Sustainability at Purdue University. Now, with grocery prices generally falling, retailers are seizing an opportunity to woo back customers.

“We find other ways to economize to the extent that it dips into retailers’ profits,” Balagtas says. “I think that could drive them to find ways to cut prices to make sure they’re drawing in budget-conscious consumers.”

Considering how much Americans typically spend on food — about 11% of their income in 2022, according to the Agriculture Department — lower prices are going to be felt by shoppers, Balagtas says. “They don’t even have to fall. Just slower inflation is going to alleviate some stress for a lot of people.”

Here’s where shoppers can find deals on food and pharmacy items.

Aldi, which has benefited from shoppers’ pivot away from pricier grocery stores, will reduce prices on more than 250 items through Labor Day. Aldi estimates its price cuts will save shoppers $100 million. The retailer did something similar last year, estimating its 2023 price cuts saved shoppers more than $60 million.

Items discounted this summer at Aldi include:

• Simply Nature: Chia Seeds – $4.89 (was $5.45).
• Simply Nature: Organic Avocado Oil – $5.49 (was $5.65).
• Season’s Choice: Frozen Blueberries (24 oz) – $3.59 (was $3.99).
• Simply Nature: Organic Pinto/Kidney Beans – $0.99 (was $1.16).
• Specially Selected: French Baguette – $1.49 (was $1.59).
• Specially Selected: Macarons – $4.15 (was $4.59).
• Vitalife: Assorted Kombucha – $2.29 (was $2.39).
• Simms: Summer Sausage – $4.19 (was $4.49).
• Emporium Selection: Cracker Cuts – $2.69 (was $2.89).
• Simply Nature: Organic Granola Bars – $3.49 (was $3.99).
• Benton’s: Cookie Thins – $2.69 (was $2.99).
• Southern Grove: Dried Cranberries (6 oz) – $1.75 (was $1.95).
• Southern Grove: Sunflower Kernels (16 oz) – $2.79 (was $3.39).
• Southern Grove: Dried Mediterranean Apricots – $2.99 (was $3.39).
• USDA Choice Black Angus Sirloin Steak – $6.99 through July 10 (was $8.49).
• Family Pack Chicken Breast – $2.19 through July 10 (was $2.49).
• Burman’s: Steak Sauce – $1.89 (was $1.99).
• Season’s Choice: Frozen French Fries (32 oz) – $2.49 (was $2.79).
• Park Street Deli: Pulled Pork/Pulled Chicken – $6.99 (was $7.49).

Amazon Fresh is cutting prices online and in-store on roughly 4,000 items, which will rotate weekly, according to CNN. Shoppers can expect to see discounts of up to 30% on meat, seafood, frozen food, dairy and cheese, beverages, snacks and pasta.

Target will mark down prices on about 5,000 items. Those price cuts are set to take place throughout the summer, and are targeting daily essentials, like milk, meat, bread, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels and pet food, among other items.

Examples of items with price cuts include:

• Good & Gather Unsalted Butter (1 lb) – $3.79 (was $3.99).
• Good & Gather Organic Baby Spinach (5 oz) – $2.99 (was $3.29).
• Prime Hydration Sports Drinks (16.9 fl oz) – $1.99 (was $2.19).
• Jack’s Frozen Pepperoni Pizza (14.3 oz) – $3.99 (was $4.19).
• Thomas’ Plain Bagels (20 oz) – $3.79 (was $4.19).
• Pepperidge Farm Goldfish Cheddar Flavor Blasted Crackers (6.6 oz) – $2.79 (was $2.99).
• Good & Gather Sea Salt Roasted Nuts (9.5 oz) – $5.29 (was $6.89).
• Clorox Scented Wipes (75 ct) – $4.99 (was $5.79).
• Huggies Baby Wipes (16 ct) – $.99 (was $1.19).
• Aveeno SPF 50 Sunscreen (3 fl oz) – $13.19 (was $13.89).
• Persil Liquid Laundry Detergent (100 fl oz) – $12.99 (was $13.69).
• Purina One Chicken & Gravy Cat Food (13 oz) – $1.99 (was $2.39).

In addition to price cuts, Target touted changes to its free Target Circle membership, which now applies deals automatically at the register. The retailer also is pursuing discount shoppers with a new store brand called Dealworthy, which launched in February. Most Dealworthy products are priced at $10 or less.

In a May 29 announcement, Walgreens called attention to an ongoing effort to cut prices on 1,300 items that dates back to October 2023.

Prices will vary by location. Examples of items with lower prices include:

• One a Day 80 ct Men’s and Women’s Gummy Vitamins – $11.99 (was $13.49).
• Always Pad Mod Regular (20 ct) – $6.99 (was $7.49).
• Clean & Clear Foaming Facial Cleanser – $6.99 (was $7.99).
• Eucerin Advance Repair Hand Cream – $5.99 (was $7.29).
• Kanka Soft Brush Tooth and Gum Pain Gel 0.07 oz – $7.99 (was $9.79).
• Salonpas Pain Relief Patch – $10.99 (was $11.99).
• Nice! Mini Pretzels – $1.99 (was $2.79).
• Nice! Sour Cream & Onion Potato Chips – $1.99 (was $2.79).

Walmart has upped its “rollback” game lately, as well. In a May 2024 earnings call, executives said it temporarily cut prices on 45% more grocery items in April compared with the previous year. Across the store, prices have been reduced on nearly 7,000 items.

In April, Walmart introduced the new BetterGoods brand, which is aimed at price-conscious shoppers with foodie tendencies. It includes 300 grocery items that either touch on a food trend or fit into popular dietary preferences, including plant-based, gluten-free and artificial flavor-free foods. Walmart says BetterGoods items cost $15 or less, with most items priced around $5 or less.

The article Some Big Stores Are Cutting Prices to Woo Back Grocery Shoppers originally appeared on NerdWallet.