Walgreens joins Target, Walmart in announcing summer price cuts

April CPI report shows inflation ticked downward

Thomas Savidge with the American Institute for Economic Research joins LiveNOW's Andrew Craft to break down the latest CPI report.

DEERFIELD, Ill. - Walgreens is lowering prices on hundreds of products this summer, joining other retailers like Target, Walmart, and Amazon who have announced similar promotions in an effort to lure in more cost-conscious shoppers.

The company on Wednesday announced plans to cut prices "on more than 1,300 national and store-brand products across health and wellness, personal care and seasonal categories."

In an attempt to boost its loyalty program, Walgreens said it will also bring back its "myW Days" in mid-July – a deal offering exclusive promotions for myWalgreens members.

FILE - A man walks through the Walgreens Pharmacy at the Moynihan Train Hall on May 11, 2023, in New York City. (Photo by Gary Hershorn/Getty Images)

Global Chief Financial Officer Manmohan Mahajan told analysts during a second quarter earnings call that it's still in the midst of a challenging retail environment as there is a continued "shift in discretionary spend away from the drug channel as consumers seek value."

Sales at retail stores open at least a year declined 4.3% in the quarter.

Target, Walmart, others also attempt to lure customers with sales

To boost profits, Walgreens is taking a page from retail behemoths Walmart and Target as well as grocers Aldi and Amazon Fresh who have been announcing promotions in recent weeks in a bid to pull in shoppers amid high inflation, which has fallen considerably from a peak of 9.1% notched during June 2022.

Prices are still up 19.4% since January 2021, before the inflation crisis began.

Walmart U.S. CEO John Furner told analysts during an earnings call that the company has almost 7,000 rollbacks, which refers to temporary price reductions on goods.

Target also announced it was cutting prices on 5,000 popular products.

Both major retailers acknowledged that consumers are still feeling the pinch, with Target executives noting how one in three Americans are maxing out their credit cards.

Earlier this month, Aldi said it was passing along $100 million in savings by slashing prices on more than 250 items through Labor Day,while Amazon Fresh said U.S. customers can save 30% on 4,000 weekly rotating grocery items every day.

This story was reported from Cincinnati. FOX Business contributed.