The grocers’ response comes amid food prices increasing nearly 27% since 2020|Christian Schnettelker|CC BY 2.0
Major grocers, including Walmart, Target and Aldi, have cut their isle prices as consumers who have been complaining about inflation-driven high costs for the past two years are shopping less.
Aiming to regain growth
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Target plans to reduce costs on 5,000 items and Aldi on 250 items.
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Walmart introduced a new affordable private label carrying 300 new products priced between $2 to $15, with more than 70% of them under $5.
The grocers’ response comes amid food prices increasing nearly 27% since 2020, contributing to consumers’ financial struggles. Several shoppers are finding cheaper alternatives, such as bulk goods stores, according to the Washington Post.
Not just grocery
Price-conscious US consumers are also searching for low-cost retail products and have taken to the Chinese e-commerce app Temu. Its parent, PDD Holdings, saw a dramatic increase in profit and revenue in the first quarter of 2024.
The Shanghai-based company reported a 246% surge in net profit to $3.9 billion (28 billion yuan), far surpassing the expected $1.7 billion (12.62 billion yuan). Revenue jumped 131% to $12 billion (86.81 billion yuan).