Categories: Food

The Price Of Food At Walmart Is Dropping. Here’s What You Need To Know.

The Price Of Food At Walmart Is Dropping. Here's What You Need To Know.

You’re not the only one who has been having a difficult time at the food store lately. Food prices across the country have skyrocketed in recent years. The USDA says that from 2019 to 2023, food prices have gone up by an unbelievable 25%. Grocery bills have gone through the roof, even at shops like Walmart that are known for being cheap.

But there is a small bit of hope in the distance. Wal-Mart, a big store known for having low prices, is doing things to make actions easier for customers. If you shop at Walmart frequently, you might notice a difference in your food bill.

Walmart’s promise to bring down food prices

On August 28, during Walmart’s earnings call for the second quarter, President and CEO Doug McMillon shared some positive news. It was true that Walmart’s food prices were still “slightly inflated” at the end of Q2, but that they are now “slightly deflationary overall.” By this measure, prices are beginning to drop, even if only a little.

To be more specific, Walmart’s food prices have gone down by 30 basis points, which is 0.3%.

McMillon talked about how Walmart is always working to lower prices in a lot of different areas. Walmart has cut prices by 7,200 items, which the company calls “rollbacks.”

In fact, McMillon said on an earnings call in February that prices for things like apples, eggs, and restaurant snacks have already gone down since last year. Some items, like asparagus and strawberries, still have higher prices, though.

It’s clear what Walmart wants to do: make food cheaper for everyone. Branded sellers are keeping their prices high, and McMillon is doing everything it can to stop them. People may think that these actions are selfless, but they are actually beneficial for Walmart’s business.

According to McMillon, Walmart’s sales will rise by 3.25 to 4.25% in the third quarter and a little more in the fiscal year 2025. That is, lower prices might be beneficial for both customers and Walmart’s bottom line.

When prices go down, what happens to sales?

John Furner, President and CEO of Walmart U.S., gave a clear example of how these price cuts are paying off. Furner said that Walmart had lowered the price of its French bread back to $1 during the February earnings call.

When inflation hit, the price of this item increased, but when it dropped to $1, sales significantly increased—by about 40% compared to the previous year. Customers are quick to act when prices go down, as shown here.

Furner used another example of rotisserie chicken. Walmart lowered the price of this famous item by $1, which made customers pleased and led to more sales. These cases show that Walmart’s approach to lowering prices is working, as evidenced by the rise in sales.

Why lowering food prices is important in a bigger picture

Walmart’s choice to lower food prices is part of a bigger trend in the store business. All grocery stores are under pressure to lower prices, and Walmart isn’t alone. Target cut the prices of 5,000 popular items in May. These included everyday things like milk, meat, bread, and fresh vegetables.

As prices rise, this trend shows that stores are starting to understand the need to help customers stick to their food budgets.

This change is also evident in politics. In the United States, both major party presidential candidates are making food prices a big part of their campaigns. Some experts believe that price-gouging began during the peak of the pandemic, when the supply chain experienced significant slowdown.

Vice President Kamala Harris has promised to work for a government ban on this practice. This occurs when companies raise costs too much in order to make more money. It’s sometimes called “greedflation.”

Conversely, former President Donald Trump has referred to Harris’s plan as “communist price control”. Trump doesn’t have a clear plan for lowering food prices, but he does say that he thinks that lowering the cost of everything by increasing domestic drilling will help bring down the price of oil.

What does this mean for those who shop?

Even though there are heated political arguments going on, people are just glad that food prices aren’t going up as much. Big stores like Walmart and Target are taking steps to lower food prices, which is positive news for customers. It shows that stores are aware of how difficult money is for many people and are trying to lower the prices of necessities.

It’s crucial to remember that price reductions may not apply to all items equally. Some things, like French bread and fried chicken, may still be more expensive even though their prices have gone down a lot. People who like to shop will have to stay alert and keep looking for deals wherever possible.

No matter what stores do, looking for the best deals is likely to always be an important part of food shopping. Food prices are still pretty high, so it pays to shop smart. Shopping deals, comparing prices, and taking advantage of discounts will continue to be important ways to keep food bills low.

In conclusion

Walmart’s promise to lower food prices is beneficial news for people who have been having a difficult time with rising shopping costs. Customers can expect some relief at the register as the company rolls out more price cuts and fights back against supplier price hikes.

Even though the economy and politics as a whole are still unclear, one thing is clear: stores like Walmart are taking steps to help customers who are having trouble.

The next few months will reveal how these price cuts work and if other stores follow suit. At least for now, though, the move toward cheaper food is positive news for all shoppers.