NATIONAL NEWS

Amazon is slashing prices on 4,000 grocery items, joining Target and Walmart

May 24, 2024, 1:40 PM

Workers stock shelves at an Amazon Fresh grocery store in Seattle, Washington, on May 2.
Mandatory ...

Workers stock shelves at an Amazon Fresh grocery store in Seattle, Washington, on May 2. Mandatory Credit: David Ryder/Bloomberg/Getty Images via CNN Newsource

New York (CNN) — Amazon Fresh has joined the growing ranks of retailers that are cutting prices. It is discounting thousands of grocery items in a bid to entice price-conscious shoppers to add a little bit more to their shopping carts.

The online grocery delivery service, which also operates a handful of physical stores, said its shoppers in the United States will see discounts every day of up to 30% on 4,000 items in-store and online, and those markdowns will rotate weekly.

A number of big retailers in recent weeks, including Target and Walmart, have lowered their prices as they strive to pull consumers into stores and online to spend more freely on both essential purchases such as food and more discretionary purchases like new clothes, decorative items for the home, arts and crafts or hobby kits.

Retailers are feeling jittery after they jacked up prices as inflation spiked in recent years. But now, households aren’t shopping like they used to, and high prices are forcing Americans to choose between wants and needs. In the game of chicken between stores and shoppers, it’s the stores that finally appear to be yielding.

That’s a problem not just for individual shoppers or even big retail chains but for the whole American economy, of which about two-thirds comes from consumer spending.

Shoppers have pulled back for a year now as costs have risen 20% to 30% higher than they were three years ago and as incomes failed to keep up, said Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings.

This is making consumers across income levels look for deals. “There’s just less dollars for consumers to spend,” Wyeth said. The challenge for retailers now is to shake consumers out of that frugal mindset, she added.

What’s getting cheaper on Amazon Fresh

The price cuts include meat, seafood, frozen food, dairy and cheese, beverages, snacks and pastas, the retailer told CNN Friday. The discounted food items will include national brands and Amazon’s (AMZN) private label products.

“Increasing our weekly deals across thousands of items and expanding the reach of Prime Savings at Amazon Fresh is just one way that we’re continuing to invest in competitive pricing and savings for all of our customers – both in-store and online,” Claire Peters, worldwide vice president with Amazon Fresh, said in a statement.

For Prime members, Amazon Fresh is stacking more savings by offering a 10% discount on hundreds of online grocery items.

Competitors are cutting, too

Target this week slashed prices on more than 1,500 popular items, ranging from butter to laundry detergent, in its attempt to pull in more shoppers.

It said Target (TGT) shoppers can expect “thousands more price cuts” — amounting to 5,000 items — being reduced over the summer and that its lower prices aim “collectively save consumers millions of dollars” on household staples and everyday items such as milk, fresh fruit, diapers and even pet food.

Last week, Walmart (WMT) said it has rolled back prices on nearly 7,000 items in its stores, saying it was seeing deflation on some key grocery items.

Value-priced grocer Aldi and furniture and home furnishings seller Ikea have also chopped priced recently.


The-CNN-Wire™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

National News

FILE: Elected officials and representatives from U.S. Men’s and Women’s National Teams unveil t...

Associated Press

Possible 2026 World Cup training camps may include Salt Lake City or Herriman

Possible team training camps for the 2026 World Cup include a site in Salt Lake City among several other U.S. cities.

4 hours ago

The statue 'Contemplation of Justice' sits above the west front plaza of the U.S. Supreme Court on ...

Mark Sherman

Supreme Court rules California man can’t trademark ‘Trump too small’

The Supreme Court on Thursday ruled against a man who wants to trademark the suggestive phrase “Trump too small.”

5 hours ago

FILE - Boxes of the drug mifepristone sit on a shelf at the West Alabama Women's Center in Tuscaloo...

Mark Sherman

Unanimous Supreme Court preserves access to widely used abortion medication

The Supreme Court has preserved access to a medication that was used in nearly two-thirds of all abortions in the U.S. last year.

5 hours ago

FILE - The 1200 building at Marjory Stoneman Douglas High School in Parkland, Fla., is seen, Oct. 2...

Terry Spencer, Associated Press

Six years after the Parkland school massacre, the bloodstained building will finally be demolished

The demolition of the building where 17 people died in the 2018 Parkland school shooting is set to begin. Crews will begin tearing down the three-story building at Marjory Stoneman Douglas High School on Friday.

14 hours ago

Ukrainian President Volodymyr Zelensky (L) and U.S. President Joe Biden shake hands while meeting i...

Fatima Hussein, Associated Press

G7 leaders agree to lend Ukraine billions backed by Russia’s frozen assets. Here’s how it will work

Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival that would use interest earned on profits from Russia's frozen central bank assets as collateral.

14 hours ago

File - Workers install lighting on an "X" sign atop the company headquarters, formerly known as Twi...

Associated Press

What happened to the likes? X is now hiding which posts you like from other users

Social media platform X is now hiding your likes.

22 hours ago

Sponsored Articles

Photo courtesy of Artists of Ballet West...

Ballet West

The rising demand for ballet tickets: why they’re harder to get

Ballet West’s box office is experiencing demand they’ve never seen before, leaving many interested patrons unable to secure tickets they want.

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 internet safety tips for kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why printer security should be top of mind for your business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light up your home with these top lighting trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for hassle-free computer repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Amazon is slashing prices on 4,000 grocery items, joining Target and Walmart