Walgreens introduced Wednesday it will proceed to chop costs on some 1,300 items — the most recent corporate to pivot to price amid indicators U.S. shoppers are experiencing spending fatigue.
The pharmacy chain said in a statement pronouncing a “summer of savings” the decrease costs have been based on shoppers ongoing struggles with increased inflation charges that proceed to bedevil the U.S. financial system.
“Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” said Tracey D. Brown, EVP, President, Walgreens Retail & Chief Customer Officer. “We continue to be committed to our customers by lowering prices on over a thousand additional items, something we’ve been doing since October of 2023.”
Walgreens previously pointed to a “challenging” retail environment when it announced its quarterly earnings in March.
Among the price cuts highlighted by the company:
- One a Day 80ct Men’s and Women’s Gummy Vitamins, now $11.99 (was $13.49)
- Always Pad Mod Regular (20ct), now $6.99 (was $7.49)
- Clean & Clear Foaming Facial Cleanser now $6.99, (was $7.99)
- Eucerin Advance Repair Hand Cream now $5.99, (was $7.29)
Prices may be different based on your location.
Walgreens’ announcement follows others by retail giants that also indicate greater awareness of consumers’ price sensitivities. Last week, Target announced lower costs for thousands of items in its stores, while Walmart recently unveiled an entire new line of food items costing $5 or less.
The post-pandemic economic recovery is now showing signs of splitting into a ‘K’-shaped one, with more well-off Americans able to sustain consistent levels of spending, even amid inflation rates that continue to hover above 3%. Lower-income consumers have been cutting back more substantially.
In its monthly consumer confidence report, released yesterday, the Conference Board business group said those making over $100,000 per year expressed the largest rise in confidence and was overall at a higher level than those for lower-income groups.
“The lower-income consumer in the U.S. is stretched … [and] is strategizing a lot to make their budgets get to the end of the month,” PepsiCo CEO Ramon Laguarta informed analysts on the corporate’s convention name in April.
Meanwhile, different spaces of the financial system extra intently tied to wealthier shoppers proceed to outperform, particularly go back and forth. Even as American Airlines announced Wednesday it was cutting growth plans, analysts stated the adjustments didn’t replicate a broader pullback.
“American’s diminished [outlook] speaks far more to its flawed initial forecast than any broad-based shift in passenger demand,” JPMorgan airline analyst Jamie Baker stated in a notice concerning the airline on Wednesday.