Aldi and Walmart are turning back the clock on inflation for Thanksgiving

Discussion
Photo: Walmart
Nov 04, 2022

Aldi and Walmart are running Thanksgiving meal promotions that promise to help their customers save as though grocery prices haven’t spiked 13 percent in 2022.

Aldi’s “Thanksgiving Price Rewind” promotion promises to match the chain’s prices from 2019 on items such as appetizers, beverages, desserts and sides. Aldi will present discounts of up to 30 percent on select items through November 29.

The discount grocer is also offering deals on turkeys whose prices have risen as a result of  outbreaks of the avian flu across the country. The Dallas Morning News reports that Aldi is offering whole frozen turkeys at $1.07 a pound in the Dallas-Fort Worth market.

“Providing amazing products at the absolute lowest prices is what we’ve always done, and we know right now that’s more important than ever,” Dave Rinaldo, president of Aldi U.S., said in a statement. “We expect to welcome tens of millions of customers in our stores this Thanksgiving season, and we want them to know they can count on us. So why not attempt that additional side dish this year, or invite over a few more friends or family members? You can rest easy knowing Aldi has your back this Thanksgiving, and beyond.”

John Laney, executive vice president, food, Walmart U.S., writes on a company blog that the retailer has made “significant investments on top of our everyday low prices so customers can get a traditional Thanksgiving meal at last year’s price.”

Walmart mined its customer data to pull the Thanksgiving promotion together.

“After all these years, we know what our customers put into their baskets for Thanksgiving. All the basics are there, like turkey, ham, potatoes and stuffing, but the convenience items are there too, like ready-to-heat mac and cheese or freshly made pumpkin pie, and we ensured that the price for the same basket of items does not cost more than it did last year,” writes Mr. Laney.

The retailer is offering whole turkeys for under $1 a pound.

Walmart+ members will have opportunities to save even more with special offers on hundreds of items and additional savings on future purchases.

DISCUSSION QUESTIONS: Are Americans significantly more price sensitive heading into this year’s Thanksgiving Day feasts than they were in 2021? How will Aldi and Walmart’s promotions affect their grocery rivals over the next several weeks?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"These pricing and promotion strategies will give Aldi and Walmart an advantage as grocers fight for holiday shoppers."
"Hands down, consumers are hugely more inflation-sensitive this Thanksgiving than at any prior holiday over the past 30+ years."
"This small win for consumers’ pocketbooks will be well received by all types of shoppers."

Join the Discussion!

16 Comments on "Aldi and Walmart are turning back the clock on inflation for Thanksgiving"


Sort by:   newest | oldest | most voted
Mark Ryski
BrainTrust

This protracted period of inflation has greatly impacted consumers, and this Thanksgiving will be tighter for many people. Aggressive price promotions by Aldi and Walmart will be welcomed by shoppers and a challenge for other grocery retailers as everyone battles for the Thanksgiving shopper and the retailers battle each other.

Neil Saunders
BrainTrust

Food accounts for a huge slice of holiday spending so, with inflation, more consumers are looking to save money without cutting back on the amount they buy. As such, Aldi and Walmart’s messages will resonate strongly. While there is a genuine desire to help the consumer, there is also some self-interest here: both chains thrive on being price leaders and it is important for them to have great headline deals to retain loyalty and shopper share. In response, expect other mainstream players to announce their own discounts and promotions in the coming couple of weeks.

David Spear
BrainTrust

With significant price spikes in food, everyone is feeling the pinch at the grocery store. Good for Aldi and Walmart as they deliver some relief during a time when families and friends come together to celebrate Thanksgiving. This small win for consumers’ pocketbooks will be well received by all types of shoppers.

Jeff Sward
BrainTrust

Hell yes we are all more price sensitive. I see turkey for $1 a pound and I am instantly looking for my car keys. Stop & Shop just lost my turkey business.

storewanderer
Guest
26 days 8 hours ago

Most grocery chains will offer turkey well under $1 per pound — watch the ads. Out in California already, Safeway and Save Mart broke ads at around .50 to .60 per pound on a frozen turkey (may require minimum purchase of $50 or something).

Lisa Goller
BrainTrust

All year, U.S. shoppers have been more price-sensitive, relying on deals and discounters as the cost of living rises.

Aldi and Walmart’s Thanksgiving promotions show gratitude by protecting grocery shoppers’ purchasing power. These pricing and promotion strategies will give Aldi and Walmart an advantage as grocers fight for holiday shoppers.

Steve Montgomery
BrainTrust

The short answer is yes. Last Thanksgiving consumers might have thought inflation would begin to decrease but after experiencing it for another year they know it is with us for a longer term.

Walmart’s and Aldi’s promotions point out the difference between their pricing and what consumers are seeing elsewhere. That adds pressure for other retailers to lower their pricing, if not to match then to reduce the delta between theirs and Aldi’s and Walmart’s.

Gene Detroyer
BrainTrust

Interesting. The New York Times reported last week that the price of turkeys would double for Thanksgiving. My wife immediately called my daughter, who is hosting Thanksgiving, and went out to buy the turkey at ShopRite. She did and reported back that it was the exact same price as last year.

If the consumer isn’t becoming more price sensitive by their own experiences, the media is surely helping.

Mohamed Amer, PhD
BrainTrust

Aldi and Walmart know the pains their customers are experiencing and are addressing them with evident and impactful actions. Hands down, consumers are hugely more inflation-sensitive this Thanksgiving than at any prior holiday over the past 30+ years. On top of the sticky U.S. and global inflation, the American consumer savings rate is the lowest since the Great Recession, and we’re at all-time highs in the rate of consumer credit build.

Ananda Chakravarty
BrainTrust

Food is not the highest concern and remains a smaller part of the disposable income budget, <7 percent for the average U.S. customer. Though it pinches, it won’t reduce the impact of the holidays except for the lowest financial classes (where it can rise up to 30 percent of income). The price changes for Walmart and Aldi as well as many other food purveyors will be on key staple foods that will drive customers to the store. The retailers will make their profits in adjacent purchases. For those who aren’t running promotions or at least matching prices, there will be competitors hungry for their business.

Shep Hyken
BrainTrust

Customers are used to price increases, but are still surprised at some (not all) items that have had a dramatic increase. The “feasts” that Aldi, Walmart, and others may offer can be a nice incentive and benefit for their customers. While Aldi and Walmart may be promoting this, holiday bundles have been around for a LONG time. This time it’s not about just saving money. It’s about beating inflation.

storewanderer
Guest
26 days 8 hours ago

So Aldi is admitting they have price increased some of these items by 30% when compared to 2019 … that is really significant, especially as we’ve been being told food inflation is just single digit percentages.

Meanwhile Walmart is just going back to 2021 prices. Not clear what percentage markdown that will be, but expect about 20%.

And they’ll both make up for it with prices on other items.

Craig Sundstrom
Guest

I think everyone would agree people are more sensitive, the real question is “how important is this?” We’re talking about one meal a year. Granted it can be a substantial expenditure for the person hosting, and for those who don’t have much money any additional amount is too much; but this group likely already shops there. So i think it will have a definite appeal, an advantage over rivals, if you will — assuming of course they don’t match it — but it will be a small one.

John Karolefski
BrainTrust

Of course shoppers are more price sensitive this Thanksgiving than in 2021. Of course, Aldi and Walmart will have gained an edge in holiday shopping. They might lure shoppers away from their normal banners. Consequently, it will be interesting to see how these competing banners respond.

Brad Halverson
Guest

Smart brand strategy and tactics by Aldi and Walmart to communicate how they are actively trying to save customers money, or create value in these uncertain financial times. This offers a sense of stability, a more known outcome as shoppers think about finding savings while still having in a good meal for Thanksgiving.

Oliver Guy
BrainTrust

Given the price increases in many areas and the potential challenges ahead it would be amazing if people were not more price sensitive than last year. Amazing how grocers are seeing this and responding in order to potentially capture market share in the short term and possibly convert customers for the longer term!

wpDiscuz
Braintrust
"These pricing and promotion strategies will give Aldi and Walmart an advantage as grocers fight for holiday shoppers."
"Hands down, consumers are hugely more inflation-sensitive this Thanksgiving than at any prior holiday over the past 30+ years."
"This small win for consumers’ pocketbooks will be well received by all types of shoppers."

Take Our Instant Poll

How much more price sensitive are Americans heading into this year’s Thanksgiving Day feasts than they were in 2021?

View Results

Loading ... Loading ...