In a move to win back customers struggling with inflation and high prices, Walgreens has announced that it will be reducing prices on over 1,500 items both online and in stores. This decision follows similar price cuts by competitors such as Target, Walmart, and Amazon. The price reductions apply to both name brands and store brands.
The essentials retailer has been committed to lowering prices since October 2023, as revealed by Retail President and Chief Customer Officer Tracey D. Brown. In the most recent earnings report, Walgreens Boots Alliance (WBA) reported a challenging retail environment in the US, leading to a lowered full-year earnings outlook.
Examples of price drops include an 80-count One A Day gummy vitamins jar from $13.49 to $11.99 and a bag of Nice! brand sour cream and onion potato chips from $2.79 to $1.99.
Retailers are feeling the pressure to lower prices as households struggle with inflation, which has risen 20% to 30% higher than it was three years ago, forcing Americans to choose between wants and needs.
Shoppers have pulled back for a year now and are looking for deals. The challenge for retailers is to shake consumers out of their frugal mindset.
Walgreens' price cuts come as the American economy faces an ongoing challenge, with about two-thirds of its revenue coming from consumer spending.
