Aldi says Thanksgiving meal prices will undercut Walmart as consumers look for value

New York
CNN
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Aldi is releasing its lowest-priced Thanksgiving meal deal in five years – undercutting one of its biggest rivals – as inflation-weary consumers shift their shopping habits to more affordable private labels.

The low-priced grocery chain is introducing an “inflation-reducing holiday meal” for $47 that will feed 10 people, which works out to $4.70 per person. That’s about $2 cheaper than a comparable offering at Walmart, indicating Aldi is ready to take on its larger rivals as it expands its store count and market share in the US.

Aldi’s meal includes all the traditional Thanksgiving dishes, including a Butterball turkey, gravy, rolls, macaroni and cheese, stuffing plus ingredients to make cranberry sauce, mashed potatoes, sweet potato casserole, green bean casserole and a pumpkin pie.

“With 25% of U.S. households now shopping at Aldi, we know grocery prices are still a top priority for customers,” CEO Jason Hart said in a press release.

The price of food has soared in recent years, partly due to the pandemic and later exacerbated by the war in Ukraine, extreme weather and companies taking the opportunity to jack up prices.

However, food price inflation has declined significantly over the past year, according to data from the Consumer Price Index. As of August, grocery prices rose at a pace of 0.9% annually, in line with the average increase in 2019, data from the Bureau of Labor Statistics show.

Earlier this year, Aldi announced plans to open 800 new stores nationwide in a $9 billion expansion plan. The German company has a low-cost business model and claims prices are up to 50% cheaper than traditional supermarkets.

At approximately 12,000 square feet, the stores are much smaller than a typical 40,000-square-foot American supermarket. More than 90% of the brands that Aldi sells are their own private labels.