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After more than two years of squeezing consumers amid higher costs for raw materials, labor and transportation, some retailers are cutting prices to get shoppers back in stores. Consumers
have been reining in their discretionary spending because food, shelter and fuel prices have remained high. For July, the Consumer Price index (CPI) — which tracks a basket of goods — rose
2.9 percent, with shelter and food driving it higher. “Consumers are facing affordability challenges with increasing CPI that has essentially robbed them of 20 percent of their buying
power,” says Mark Hamrick, Bankrate’s Washington bureau chief. “People are cutting back on discretionary purchases, trying to save money with respect to necessities, or at least optimize
their spending.” Adults are looking for both online and in-store bargains, and they are willing to purchase cheaper brands to save a few bucks. That’s what Adobe Analytics, which tracks
e-commerce sales, found. Since the start of 2024, Adobe said the share of the cheapest goods purchased increased significantly across all categories, including the following: * Personal
care, up 96 percent * Electronics, up 64 percent * Apparel, up 47 percent * Home and garden, up 42 percent * Furniture and bedding, up 42 percent * Groceries, up 33 percent * Sporting goods,
up 28 percent * Appliances, up 26 percent * Tools and home improvement, up 26 percent * Toys, up 25 percent At the same time, Vivek Pandya, manager of Adobe Digital Insights, says some
merchants built up excess inventory over the past couple of years and are now lowering prices to move the merchandise. These moves are far from altruistic, but in any case, consumers are
getting a break at these eight stores. 1. ALDI PRICE ACTIONS: The grocer is passing $100 million in savings to customers through Labor Day by slashing the prices of over 250 items,
including picnic supplies, barbecue essentials, travel-ready snacks and healthier foods. Last year Aldi said it saved customers $60 million in price cuts during the campaign. The company
pointed to persistent inflation as why it expanded its price reductions this year. 2. AMAZON FRESH PRICE ACTIONS: Amazon is cutting prices by as much as 30 percent on a rotating weekly
selection of 4,000 grocery items both in store and online. Amazon Fresh in the U.S. also expanded Prime Savings, giving Prime members 10 percent off hundreds of grocery items when shopping
online. 3. GIANT FOOD PRICE ACTIONS: Hundreds of its private-label food brands, which include Giant, Nature’s Promise, Taste of Inspirations, Smart Living, Always My Baby, Companion and
CareOne, will get price cuts. Giant is also boosting its Flexible Rewards program, giving loyalty cardholders two times the points for every dollar spent on its private-label brands. The
moves are designed to get shoppers to try its products over household brands. 4. IKEA PRICE ACTIONS: The Swedish home accessories and furniture retailer has been slashing prices in several
countries for some time. In January, it announced it would do more of that in 2024, citing decreasing costs for transportation and raw materials. The price cuts vary by country, but Ikea
said it is reducing the prices on thousands of products. The aim is to restore prices to inflation-adjusted prepandemic levels by the end of 2025.