Walmart Remains Discount Juggernaut In Price War Among Supermarkets

Cash-strapped consumers are increasingly turning to Walmart for the best grocery deals. Even wealthier consumers are trading down from Whole Foods and other upscale supermarkets to Walmart as the inflationary pressures of former President Biden’s failed 'Bidenomics’ continue to wreak financial havoc on low- and middle-income households.

A new price survey of 38 SKUs in dairy, frozen goods, dry grocery, HPC, and produce categories across Kroger, Albertsons (under Randalls), Walmart, Sprouts Farmers Market, Whole Foods, and Dollar General found that Walmart „continued to have the lowest prices.”

Goldman’s Leah Jordan, Kate McShane, and Eli Thompson conducted the survey on Jan. 15 and found Walmart had the lowest prices at -11.0% vs. the group average (narrowed from -11.2% last month). Dollar General followed this at -3.6% (vs -5.6% last month). Whole Foods had the highest prices at +10.2%, followed by Sprouts.

By category, Walmart had the lowest prices in dairy products (-9.0%), frozen foods (-13.2%), dry grocery (-14.0%), and produce (-18.3%), while Dollar General had the lowest prices in HPC (-13.5%). Conversely, Sprouts had the highest prices in frozen foods (+21.8%), dry grocery (+10.3%), and produce (+1.3%), while Whole Foods had the highest prices in dairy (+8.4%), and Kroger had the highest prices in HPC at +7.2%.

Here’s how prices have changed since the December survey:

The analysts noted that price gaps between the supermarket retailers narrowed:

Considering how the price gap has evolved, we compare the price variance against the group average and learn that price gaps narrowed m/m for 4 out of 6 six retailers in our survey including KR, ACI, DG and WMT while SFM and WFM widened. Compared to the group average, prices were relatively higher vs. last month for KR, SFM, WFM, DG and WMT while ACI was lower.

Additionally, price gaps narrowed vs. a year ago for all retailers. Compared to the group average, prices were relatively higher vs. last year for KR, DG, and WMT while ACI, SFM, and WFM were lower.

Walmart has become the clear winner in the price wars among retailers. Goldman’s Kate McShane reiterated a „Buy” rating to clients last week with a 12-month price target of $93.

Parabolic.

McShane wrote in a separate note last week: „WMT is seeing a consistent consumer. The company remains focused on its four value propositions, including price, assortment, shopping experience, and customer trust. The company is focused on providing consistent every day low prices.”

We cited Goldman in mid-June…

Attention Cash-Strapped Americans: Goldman Finds Top Supermarket Offering The Best Grocery Deals https://t.co/0WSTOWex5J

— zerohedge (@zerohedge) June 15, 2024

And again & again:

• Goldman Reaffirms Walmart Offers Best Grocery Deals

• Goldman Consumer Trader Declares Walmart „Winner” As 'Trade-Down Phenomenon’ Crushes Target & Dollar General

• Goldman Finds Walmart Maintains Lead In Value Pricing War

The inflation storm produced by former President Biden and radical far-left Democrats has transformed the nation of consumers into Walmart shoppers.