Grocers race to cut prices as shoppers pare spending

America's grocery stores are cutting prices to lure consumers who have pared back spending, The New York Times reported. Walmart said it will reduce the price of its 1-pound log of ground beef to $5.94 from $6.74 and slash prices on fresh corn, cherries, potato chips and Coca-Cola. Costco cut prices on eggs, beef, chicken wings and chocolate almonds.

Whole Foods has "reduced prices on more than 900 products across private brands," a spokesperson told the Times. Stop & Shop lowered the price of a rotisserie chicken by $1 to $6.99 and a can of Bumble Bee tuna to $1.99 from $2.29. Aldi keeps expanding, taking share from traditional chains.

The retailer effort is real but limited. "The average grocery retailer is only making 1.5 percent to 2 percent net profits on groceries," food industry analyst Phil Lempert told the Times. "There's not a lot they can do to take price cuts on their own."

Walmart said at least some of its price cuts will be funded by the $2.4 billion it has filed for in reimbursements after the Supreme Court ruled in February that President Trump exceeded his authority on tariffs.

For household budgets, the headline discounts do not close the gap. Food prices across all categories are expected to rise 3.2 percent in 2026, according to the USDA Economic Research Service. Food consumed at home has climbed 18 percent since the beginning of 2022, per the Bureau of Labor Statistics.

A May CNN poll cited by the Times found 61 percent of Americans had changed which groceries they bought to stay within their budget — a level of adjustment that will keep the pricing wars intense through year-end.