This is why Walmart and Target might have even cheaper groceries soon
As if you didn’t already have plenty of reasons to shop at these stores, Time reported that both Walmart and Target will be offering even lower pricing on their groceries. As these massive retailers try to compete with other supermarkets and stores, they are going to cut back on food pricing and that means cheaper groceries for Walmart and Target shoppers.
Although the economics of food are pretty complicated, this is good news for people in food-insecure households. Yet, it’s not like Walmart and Target are going to be selling their food for lower prices out of the goodness of their corporate hearts — it’s all about competition.
According to Reuters, Walmart is lowering prices on groceries because of the German supermarket chain Aldi. The American store has already cut back pricing on food staples in 11 states with items like peanut butter, toilet paper, pasta, chicken breasts, and Coca-Cola (err, soda shouldn’t be a staple) being cheaper at Walmart than Aldi in a test Reuters conducted.
Target has struggled more than Walmart when it comes to seducing people with their groceries. And in a report of their fourth quarter and full-year earnings in 2016, Target CEO Brian Cornell said that Target “will invest in lower gross margins to ensure we are clearly and competitively priced every day.”
So, while these changes may not necessarily happen overnight, you might start noticing that the food prices have gone down in these superstores. And hopefully that’s something that lower income families can take advantage of.