8 Retailers Cutting Prices to Lure Inflation-Weary Shoppers

With prices still high in many categories, consumers have less money to spend

Donna Fuscaldo,

AARP

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En español

Published May 15, 2024

/ Updated August 16, 2024

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AARP (Source: Shutterstock)

After more than two years of squeezing consumers amid higher costs for raw materials, labor and transportation, some retailers are cutting prices to get shoppers back in stores. Consumers have been reining in their discretionary spending because food, shelter and fuel prices have remained high.

For July, the Consumer Price index (CPI) — which tracks a basket of goods — rose 2.9 percent, with shelter and food driving it higher. “Consumers are facing affordability challenges with increasing CPI that has essentially robbed them of 20 percent of their buying power,” says Mark Hamrick, Bankrate’s Washington bureau chief. “People are cutting back on discretionary purchases, trying to save money with respect to necessities, or at least optimize their spending.”

Adults are looking for both online and in-store bargains, and they are willing to purchase cheaper brands to save a few bucks. That’s what Adobe Analytics, which tracks e-commerce sales, found. Since the start of 2024, Adobe said the share of the cheapest goods purchased increased significantly across all categories, including the following:

Personal care, up 96 percent
Electronics, up 64 percent
Apparel, up 47 percent
Home and garden, up 42 percent
Furniture and bedding, up 42 percent
Groceries, up 33 percent
Sporting goods, up 28 percent
Appliances, up 26 percent
Tools and home improvement, up 26 percent
Toys, up 25 percent

At the same time, Vivek Pandya, manager of Adobe Digital Insights, says some merchants built up excess inventory over the past couple of years and are now lowering prices to move the merchandise.

These moves are far from altruistic, but in any case, consumers are getting a break at these eight stores.

1. Aldi

Price actions: The grocer is passing $100 million in savings to customers through Labor Day by slashing the prices of over 250 items, including picnic supplies, barbecue essentials, travel-ready snacks and healthier foods. Last year Aldi said it saved customers $60 million in price cuts during the campaign. The company pointed to persistent inflation as why it expanded its price reductions this year.

2. Amazon Fresh

Price actions: Amazon is cutting prices by as much as 30 percent on a rotating weekly selection of 4,000 grocery items both in store and online. Amazon Fresh in the U.S. also expanded Prime Savings, giving Prime members 10 percent off hundreds of grocery items when shopping online.

3. Giant Food

Price actions: Hundreds of its private-label food brands, which include Giant, Nature’s Promise, Taste of Inspirations, Smart Living, Always My Baby, Companion and CareOne, will get price cuts. Giant is also boosting its Flexible Rewards program, giving loyalty cardholders two times the points for every dollar spent on its private-label brands. The moves are designed to get shoppers to try its products over household brands.

4. Ikea

Price actions: The Swedish home accessories and furniture retailer has been slashing prices in several countries for some time. In January, it announced it would do more of that in 2024, citing decreasing costs for transportation and raw materials. The price cuts vary by country, but Ikea said it is reducing the prices on thousands of products. The aim is to restore prices to inflation-adjusted prepandemic levels by the end of 2025.

5. Michaels

Price actions: The arts and crafts retailer is lowering prices on more than 5,000 items across several categories, including home decor, art supplies, seasonal items, T-shirts, wall frames and many others. Prices for paint, markers and pens have been reduced up to 15 percent, while T-shirts will cost up to 40 percent less.

6. Target

Price actions: Target cut the prices of 1,500 everyday items, from milk to paper towels, with more to come. The retailer plans to slash the prices of about 5,000 items, which it says will save consumers millions of dollars this summer.

7. Walgreens

Price actions: The drugstore operator plans to cut the prices of over 1,300 national and store-brand products in the health and wellness, personal care and seasonal categories. Walgreens is also rolling out promos, including the return of myW Days in mid-July. On those days, myWalgreens loyalty program members will get exclusive offers, including a percentage off some items.

8. Walmart

Price actions: Since last year Walmart has expanded its ongoing program of price rollbacks to include up to 50 percent more products year over year in the fourth quarter. The retailer said price cuts are across-the-board, including in its grocery department. During Walmart’s second-quarter earnings conference call the retailer said in the U.S. there are more than 7,200 rollbacks across categories.

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Donna Fuscaldo is a contributing writer and editor focusing on personal finance and health. She has spent over two decades writing and covering news for several national publications including The Wall Street Journal, Forbes, Investopedia and HerMoney.