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As Thanksgiving approaches, Aldi and Walmart (WMT+0.77%) are competing to provide budget-friendly meals, pitching that families can celebrate without overspending.
Aldi said it’s offering its lowest-priced Thanksgiving basket in five years. For about $47, shoppers can prepare a meal for ten people, which comes to around $4.70 per person. The discount grocer said the “inflation-busting” meal could provide some much-needed relief, especially as grocery prices have surged by 50% since 2019.
Jason Hart, Aldi’s CEO, emphasized that “grocery prices are still top of mind for customers,” and with “25% of U.S. households shopping at Aldi,” the retailer wants to offer a traditional meal that doesn’t force families and friends to “scale back.”
The holiday shopping list at Aldi includes a Butterball turkey with spices, gravy, rolls, mac & cheese, stuffing, and traditional sides like cranberry sauce and pumpkin pie.
Meanwhile, Walmart has launched its own Thanksgiving meal at an “even lower price than last year.” For around $7 per person, customers can purchase a meal that serves eight, totaling less than $56. Notably, the retail giant is offering 29 items as part of the basket, including a turkey priced at $0.88 per pound.
Walmart said the “inflation-free” meal will be available in-store and online, with options for pickup and delivery. Should shoppers feel festive, they can also “give or gift” the meal to a loved one. Like Aldi, Walmart noted that “food prices remain top of mind” for customers.
Aldi and Walmart’s Thanksgiving deals are timely, particularly as inflation pushes consumers to be more discerning with their money this holiday season.
In recent years, food prices have risen dramatically, driven initially by the pandemic and further impacted by the war in Ukraine. Most recently, extreme weather events and even a big U.S. port strike have given companies room to increase prices.
However, in a bright spot, grocery prices have somewhat stabilized since August, showing an annual increase of just 0.9%, according to Bureau of Labor data. This rate is similar to the typical increase seen in 2019, which indicates that the sharp price hikes of recent years are easing.
By offering discounted holiday feasts, Aldi and Walmart could stand to gain significantly in customer loyalty and sales right before Christmas.
In fact, earlier this year, Aldi announced plans to invest over $9 billion to open 800 new U.S. stores and said it would hire over 13,000 new store and warehouse associates, positioning itself for continued growth. To compare, Aldi operates more than 2,400 locations across the U.S., while Walmart runs more than 4,600 U.S. stores.