Walmart Inc. (NYSE: WMT | WMT Price Prediction) is offering a special Thanksgiving discount. The price of its Thanksgiving basket of food is only $4 a person, based on a price of less than $40 for a meal for 10. A primary reason for the deal is to offer turkey at only 97 cents per pound. The meal consists of national brands and private brand items.
The deal offers more than just low food prices. The Thanksgiving basket is available for free express delivery to its first-time Pickup and Delivery customers. The price of turkey is the lowest it has been since 2019. The whole meal program started in 2022.
Walmart listed the reasons for the promotion: “A full meal at an incredible price, a carefully curated basket with all the ingredients that make up America’s favorite Thanksgiving meals, including the national and private brands they love, and easy to shop in-store or online with free pickup or fast delivery.”
One incentive for Walmart to run the promotion is that groceries make up over half its U.S. revenue. Bloomberg mentioned that the low price of the food is less of a strain on Walmart’s bottom line because most of these items are not affected by tariffs.
Walmart does not say whether it makes money on the promotion. However, it does use the program to point out “meaningful savings” for its customers.
Walmart, like almost all other large American retailers, has to deal with the cost of tariffs. Most companies have indicated, particularly on earnings calls, that tariffs will hurt their ability to hold prices. Their only option may be to pass some of these increases on to customers. By promoting “value,” Walmart shows it is aware of the financial challenges many shoppers face, especially as inflation, while lower than two years ago, remains an issue.
Of course, as America’s largest retailer, Walmart has the benefit of scale. Smaller competitors may not be able to afford to offer a similar deal.
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