Walmart set to slash prices on over 7,000 everyday items with massive savings on offer

Walmart is reducing prices across the store to appeal to customers looking for a deal.

CEO Doug McMillion said in the second quarter earnings call Thursday the company has slashed costs on 7,200 items from various categories. The purpose of the price cuts are to maintain "competitive price gaps" with rival retailers .

“As it relates to value, we’re lowering prices,” McMillion said.

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The price cut is called a “rollback,” which is an in-house term used to describe a temporary reduction on certain items. It’s been a part of the Walmart pricing strategy for decades.

A large sector of Walmart’s sales are groceries, which are about 25 percent lower in cost than most traditional supermarkets, according to CNN. Other retailers are following suit with cost cutting, including Target and Walgreens, as they look to draw back customers.

Overall, Walmart had a better than expected second quarter, with an increase in US sales of 4.2 percent. Operating income also increased 8.5 percent, and US digital sales have skyrocketed 22 percent in the last quarter.

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The increase is significant because it’s opposite of the current consumer habits seen at other major retailers like Disney and McDonalds. Because of high inflation customers have been less willing to spend money, leading to the train of meal deals that have been released from fast food chains.

McMillion said on the call: “We aren’t experiencing a weaker consumer overall. Customers from all income levels are looking for value and we have it.”

There appears to be relief when it comes to inflation, however, as the Consumer Price Index, a key metric in determining inflation, has dipped below 3 percent for the first time since 2021. Axios reported the new data will inform the Federal Reserve in lowering interest rates and easing pressure on the economy.