Walmart, Target Cut Grocery Prices as U.S. Food-at-Home Inflation Hits 2.7%
Updated
Updated · Fortune · Jul 25
Walmart, Target Cut Grocery Prices as U.S. Food-at-Home Inflation Hits 2.7%
3 articles · Updated · Fortune · Jul 25
Summary
Walmart rolled back prices in early July on ground beef, corn, cherries, ice cream, chips and Coke and Pepsi products, while Target had already cut some food prices in March.
The cuts follow weakening grocery demand: Bain and NielsenIQ said items purchased fell in the second half of 2025 and dropped more sharply starting in February.
High gas prices, wider GLP-1 use and reduced food-aid benefits are squeezing spending, pushing shoppers toward discounters such as Walmart, Costco and Aldi and toward cheaper store brands.
USDA said food-at-home prices are still expected to rise 2.7% this year after a 2022 peak of 11.4%, showing why retailers see price cuts as a way to win back customers.
Some costs remain sticky or policy-driven — coffee prices are up 54% since 2019 and fresh tomatoes rose 19.5% in June after a 17% U.S. import tax on Mexican tomatoes.