U.S. retail giant Walmart (WMT) has launched its cheapest Thanksgiving meal for three years as consumers continue to feel the weight of economic woe.
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Walmart revealed today that its Thanksgiving meal basket will be priced at under $4 per person. That is the lowest since the retailer launched the program in 2022.
It’s also offering free express delivery on the meal basket for first-time Pickup and Delivery customers.
Turkey and Potatoes
The basket, which is meant for 10 people, includes more than 20 items, such as a turkey, potatoes, stuffing mix, fried onions, pie crusts, and boxed macaroni and cheese.
The bundle, which cost about $7 per person last year, comes a week after the U.S. arm of German discount supermarket chain Aldi introduced a similar holiday offer.
The price cut comes as U.S. retailers respond to customer concerns over higher inflation, living costs and uncertainty over the economy tied to U.S. tariff strategies.
The U.S. Index of Consumer Sentiment is currently at 55.00, down from 70.50 one year ago, and a recent Economist/YouGov poll found that 57% of adults believe the economy is going to get worse.
They are concerned about the impact of President Trump’s tariffs, inflation dragging down real income growth and a weakening job market with employers adding just 22,000 jobs last month.
Resilient Walmart
In its most recent earnings call, Walmart CEO Doug McMillon said that so far the impact of tariffs has been “gradual enough that any behavioral adjustments by the customer have been somewhat muted.”
However, more pain could come if Trump imposes a 100% tariff on China in November. Walmart is in the firing line of higher tariffs given that key consumer goods segments such as clothes, toys, home furnishings and consumer electronics are exposed to Chinese sourcing.
Walmart imported approximately 60% of its products from China in 2023. Rival Amazon (AMZN) is reported to depend on China for up to 70% of its goods, based on estimates from Wedbush.
Despite the pressure, the WMT share price has held up well this year as customers continue to seek it out for value but also tradition.
“We know every dollar and minute counts – which is why we are offering a low priced, one-click Thanksgiving Meal Basket featuring iconic brands like Butterball and Stove Top alongside trusted Walmart private brand items. We want every family to be able to share a meal and celebrate without compromising on quality, quantity or tradition,” said John Furner, President & CEO of Walmart U.S.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $129. WMT stock’s consensus price target is $115.07, implying a 7.78% upside.
