Walmart is still considered the price leader in the grocery industry, but its rivals are not far behind.
In a recent report, the Telsey Group analyzed online grocery prices at seven retailers: Walmart, Target, Amazon Fresh, Kroger (King Soopers), Albertsons (Safeway), Sprouts and Whole Foods (via Amazon) in Denver, Colorado. The analysts specifically looked at 40 key products in two categories, including “several premium items,” and found that:
Joe Feldman, senior managing director at Telsey Advisory Group, told FOX Business that Kroger and Target, usually close the gap on second place, have “closed the gap slightly with Walmart” and are now offering a smaller price premium to the Arkansas-based retailer than they used to.
Last June, Target and Kroger stocks were trading 14-15% higher than Walmart’s. Today, that figure is around 6-7% higher.
But what’s even more interesting, according to Feldman, are the price cuts on Amazon Fresh.
A year ago, AmazonFresh was 26% more expensive than Walmart. Today, it’s only 7.5% more expensive, Feldman said, showing that the company has been pretty aggressive in lowering prices.
Feldman said consumer packaged goods (CPG) companies are footing the bill to support these price cuts, which is good news for consumers.
These CPG companies have helped drive down prices, while large grocers
“It really allows us to be proactive and price things competitively for the consumer.”
Prices for household foods, or groceries, are still about 20% higher than they were in 2019. However, overall inflation has come down significantly from the highs seen in 2022.
Food prices rose slightly in May, increasing 0.1% over the month, while grocery prices remained unchanged.
Food prices, along with gasoline prices, are one of the strongest indicators of household inflation.
These are the two things they see most often. And they see it every day. [or] “Every few days prices drop, and when they start to stabilize, consumers feel reassured that things are getting better,” Feldman said.
