Walgreens said it will slash prices on 1,300 items across its drugstores — the latest big retailer to enact discounts as consumers grow increasingly picky about where they shop in an era of stubbornly high inflation.
Earlier this week, Amazon Fresh announced that it was slashing the costs of 4,000 weekly rotating grocery products by up to 30% at its online and brick-and-mortar locations. Last week, Target announced price cuts on 5,000 items storewide.
That followed a similar move earlier this month by Walmart, which said it’s slashing markups on 7,000 items — and noted that it has been getting more business lately from wealthier shoppers who also have been feeling the pinch of higher prices on basic goods.
On Wednesday, Walgreens announced price cuts on items such as vitamins, female hygiene products, toothbrushes, pain relief patches, hand cream and mini pretzels.
According to Walgreens, customers who shop for an 80-count container of One a Day Men’s and Women’s Gummy Vitamins will now pay $11.99 instead of $13.49 before the discount. A 20-count pack of Always Pad Mod Regular which was previously $7.49 now costs $6.99.
Walgreens has also reduced the price of its Clean & Clear Foaming Facial Cleanser from $7.99 to $6.99. The pharmacy chain said it is also offering a pack of Nice! Mini Pretzels for $1.99 — down from $2.79.
“Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” said Tracey D. Brown, president of Walgreens Retail.
Last week, Target announced that it would cut prices on thousands of household basics ranging from diapers to pet food. Target shoppers this summer will see prices lowered for items including meat, milk, soda, bread, and fruits and vegetables, the retailer said.
The announcement came just months after Target rolled out its “dealworthy” discount brand that includes 400 household and essential products priced at under $10.
Days after it announced its discounts, Target last week revealed a 3.1% drop in net sales compared to last year and a 3.7% quarterly dip in comparable sales — the fourth consecutive quarter of declines.
Walmart, on the other hand, posted better-than-expected quarterly profits, with much of its growth was due to the popularity of its e-commerce site as well as spending by wealthy customers.
The Arkansas-based retail giant said earlier this month it was lowering costs on some items by as much as 45%. Markdowns include a 28-ounce can of Bush’s baked beans, slashed to $2.22 from $2.48, and a 24-pack of 12-ounce Diet Coke priced at $12.78 versus $14.28 previously.
Low- and middle-income Americans have become more frugal during the past year, prompting companies such as McDonald’s, Wendy’s and Burger King to announce value bundle meals in hopes of enticing them back to their restaurants.
Since President Biden took office in January 2021, grocery prices have risen by more than 21%.
Overall, inflation was 3.4% higher year-over-year in April, while groceries were 2.2% more expensive than they were in 2023.
Walmart executives said the chain is seeing more people eating at home versus eating out. Walmart believes its discounts will help the business over the remainder of the year.
“We’re going to lead on price, and we’re going to manage our (profit) margins, and we’re going to be the Walmart that we’ve always been,” CEO Doug McMillon told analysts earlier this month.
Walgreens said it plans to introduce promotional campaigns throughout the summer, including the return of myW Days, where members get exclusive offers and rewards.
Big-box supermarket chains such as Aldi and Kroger also announced similar deals.
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
