Discount stores such as Walmart, Dollar General and others are seeing a rise in “wealthier” shoppers , as more and more Americans beset ...
Discount stores such as Walmart, Dollar General and others are seeing a rise in “wealthier” shoppers, as more and more Americans beset by inflation turn to budget retailers.
According to the Daily Mail, the Jeff Bezos-owned Whole Foods offers bread at $4.79 and milk at $8.99. Walmart and Dollar General sell both food items at way lower prices.
“Similar savings can be seen with a pair of steaks, which go for nearly $32 at Whole Foods, while Walmart sells it for $16.77 and Dollar General for just $9. When it comes to a dozen eggs, Whole Foods’ price is around $5.49 while Walmart sells them for $3.23.”
The British news outlet added that butter sells for $9.99 at Whole Foods – more than double the sale price of Walmart’s $4.48 at Walmart and Dollar General’s $4.45. Flour, which fetches at about $6.39 at Whole Foods, can be bought for $3.83 at Walmart and $4.50 at Dollar General.
Dollar General, which boasts regular low prices, has also seen a high increase in more well-off customers. The firm’s stock saw a 12.66 percent increase year-over-year. However, it was unable to ward off scrutiny from Ohio Attorney General Dave Yost – who had been probing allegations of price gouging in early November.
The Buckeye State’s top attorney said at least 20 Dollar General stores took advantage of people looking for better deals. Inspectors have found that as many as 88 percent were cheaper on the shelves than at the actual checkout line. NBC 4 later reported five Dollar General stores in Ohio’s Franklin County has failed a second inspection.
“Ohioans can ill-afford businesses that draw people in with the promise of low prices only to deceive them at the checkout counter,” Yost said in a statement. “This seems like a company trying to make an extra buck and hoping no one will notice.”
Walmart slashes prices off Thanksgiving staples
Meanwhile, Walmart saw an annual U.S. sales growth of 8.2 percent from last year, even surpassing Wall Street expectations as stocks soared by seven percent. According to the company, about 75 percent of its sales growth has been fueled by households that earn $100,000 a year, demonstrating the middle-class’ flight to its stores for better deals. For the coming holidays, the company forecasted a three-percent increase in sales from a year ago.
“Although times are tougher, consumers’ desire for value and low prices are playing into Walmart’s hands,” GlobalData Retail analyst Neil Saunders told his clients via email.
John David Rainey, Walmart’s chief financial officer, told CNBC that the rise in shopping at the company’s stores reflected the reality of Americans still strapped for cash. “People have less discretionary income or less disposable income to spend on things and so they’re looking for value,” he said.
Responding to this increase in customers, Walmart announced on Nov. 3 that it would roll back prices on Thanksgiving food items to 2021 levels.
“Our approach this holiday helps make sure customers don’t have to compromise on what matters. We’re keeping prices low and our assortment strong to serve them all season long,” the big-box retailer said in a press release.
“Saving money is a top priority for our customers right now, so this year, we’re removing inflation on an entire basket containing traditional Thanksgiving items. We’re proud to offer customers this year’s Thanksgiving meal at last year’s price so families don’t need to worry about how they’ll set their holiday table.”
Items included in the price rollback include “ham, potatoes and stuffing,” alongside convenience items such as “ready-to-heat mac and cheese” and “freshly-made pumpkin pie.” Whole turkeys, a centerpiece of Thanksgiving dinners, will also be more affordable for Americans with a 50 percent price reduction. These price reductions will last until Dec. 26, Walmart added.
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