Key Takeaways
- Walgreens joined the growing list of retailers starting to cut prices in the hopes of winnings back consumers who have changed their shopping habits due to inflation.
- The retailer said Wednesday that it is lowering prices on over 1,300 products and launching promotional events over the summer.
- A number of retailers including Walmart and Target also announced in recent weeks they are reducing prices for some items.
- Walgreens shares fell over 3% Wednesday following the announcement.
Shares of Walgreens Boots Alliance (WBA) fell over 3% Wednesday after the pharmacy retailer announced plans to join the growing list of retailers cutting prices to win back customers who have changed their shopping habits to deal with inflation.
Walgreens Launches Summer Savings
Walgreens said it was starting its “Summer of Savings” with plans to cut prices on more than 1,300 products across the country. The retailer is also planning to offer a number of promotional campaigns, with some specifically for members of its reward program.
“Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” Walgreens Chief Customer Officer Tracey Brown said. “We continue to be committed to our customers by lowering prices on over a thousand additional items, something we’ve been doing since October of 2023.”
In its last earnings report in late March, Walgreens said it was operating in a “challenging retail environment” as retail sales declined 4.5% from the year-ago period.
Joining the Trend of Retail Price Cuts
In recent weeks, some of the largest retailers in the U.S., including Target (TGT) and Walmart (WMT), announced price cuts on some items. Target said it would lower prices on about 5,000 popular products over the summer.
Walmart said in its latest earnings call that it rolled back prices on around 7,000 items, and also launched a private food line called “bettergoods,” with most items under $5.
Both retailers said in recent earnings calls that inflation is affecting customers’ behavior, with spending focused on essentials and less on discretionary items.
Walgreens shares fell 3.2% Wednesday to close at $14.89, their lowest closing price since 1997.