On November 26, 2021, the sign outside the Walgreens store owned by Walgreens Boots Alliance, Inc. in Manhattan, New York City, USA.
Andrew Kelly | Reuters
Walgreens announced Wednesday that it will continue to cut prices on about 1,300 items, the latest company to turn to value at a time when U.S. consumers are experiencing signs of spending fatigue.
Pharmacy chain said in a statement ‘Summer savings’ announced, lower prices in response to consumers continuing to struggle with high prices Inflation continues to plague the U.S. economy.
“Walgreens understands our customers are under financial stress and struggling to purchase everyday essentials,” said Tracey D. Brown, executive vice president and president and chief account officer, Walgreens Retail Division. “We continue our commitment to our customers by reducing prices on more than 1,000 additional items, something we have been doing since October 2023.”
Walgreens previously noted the retail environment was “challenging” when it reported quarterly earnings in March.
Price reduction measures highlighted by the company include:
- One daily 80 ct gummy vitamin for men and women for $11.99 (regularly $13.49)
- Always Pad Mod Regular Edition (20ct) for $6.99 (regularly $7.49)
- Clean & Clear Foaming Cleanser on sale for $6.99 (regularly $7.99)
- Eucerin Advanced Repair Hand Cream is on sale for $5.99 (regularly $7.29)
Prices may vary depending on your location.
Walgreens’ announcement follows other announcements from the retail giant that also indicate increased awareness of price sensitivity among consumers. Last week, Target announced it was cutting prices on thousands of items in its stores. And Walmart recently Launched a new line of food items priced under $5.
The post-pandemic economic recovery is now showing signs of fragmenting into a “K”-shaped recovery, with more affluent Americans able to maintain stable spending levels even as inflation continues to hover above 3%. Low-income consumers have been slashing spending.
In its monthly consumer confidence report released yesterday, the Conference Board business group said those earning more than $100,000 a year Confidence has the largest increase and is at a relatively high level overall higher than low-income groups.
“Low-income consumers in the United States are stretched thin…and a lot of strategies are being put in place to keep their budgets going through the end of the month,” PepsiCo Chief Executive Ramon Laguarta told analysts on a company call in April.
Meanwhile, other parts of the economy more closely tied to wealthy consumers continue to outperform, particularly tourism. Although American Airlines announced cuts to its growth plans on Wednesday, analysts said the changes did not reflect a broader pullback.
“American’s (outlook) decline says more about flaws in its original forecast than passenger demand,” J.P. Morgan airlines analyst Jamie Baker said in a note on the airline on Wednesday. any extensive changes.
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