Walmart slashes prices on thousands of fan-favorite items to stay competitive with Target and Walgreens

Walmart is slashing prices across the board to attract bargain-hunting shoppers.

CEO Doug McMillion revealed during Thursday's second quarter earnings call that the company has cut costs on 7,200 items from various categories in a bid to maintain "competitive price gaps" with rival retailers.

"As it relates to value, we're lowering prices ," McMillion declared.

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The price reduction strategy, known internally as a "rollback," involves temporary cuts on certain items and has been a part of Walmart's pricing policy for years.

Groceries, which makeup a large portion of Walmart's sales, are about 25 percent cheaper than at most traditional supermarkets, CNN reports. Other retailers, including Target and Walgreens, are also cutting costs to lure back customers, reports the Irish Star .

Overall, Walmart outperformed expectations in the second quarter, with US sales rising by 4.2 percent. Operating income grew by 8.5 percent, and US digital sales soared by 22 percent in the last quarter.

This growth is notable given the current consumer trends seen at other major retailers like Disney and McDonalds. High inflation has made customers more reluctant to spend, leading to a slew of meal deals being released by fast food chains.

McMillion noted on the call: "We aren't experiencing a weaker consumer overall. Customers from all income levels are looking for value and we have it."

In related news, there's a silver lining with inflation cooling down as the Consumer Price Index, a major gauge of inflation, dropped below 3 percent for the first time since 2021, Axios has reported. This dip could signal to the Federal Reserve to potentially slice interest rates, taking some heat off the economy.