Walmart Warns Prices Are Going Up: Here are 5 Alternatives for Cheaper Groceries

Shoppers will soon feel the pinch of increasing prices in US because of President Donald Trump's tariff war, says retail giant Walmart while sounding an alarm.

The Arkansas-based giant that built its empire on 'everyday low prices,' told investors on Thursday that it cannot absorb the full impact of Trump's import duties, warning price increases will begin by month's end and accelerate through June.

Walmart's Warning And What It Means For Your Wallet

Known as a key indicator of how American consumers are doing, Walmart's direct announcement also highlights the impact of the trade war on businesses. With a long-standing reputation for keeping expenses in check and prices down, this warning from Walmart is significant.

Reuters noted that the company's stock value dropped by over 4% in morning trading. This happened after Walmart chose not to give a profit prediction for the upcoming second quarter, even though their US store sales beat expectations in the first three months of the year.

Sales Figures And The Trade War's Impact

Walmart's total sales increased by 2.5%, reaching £124.70 billion ($165.6 billion), just slightly below what analysts had anticipated. Sales at stores open for at least a year climbed by 4.5%. The trade war has prompted many companies in the US to reduce or eliminate their predictions for the full year, as people are increasingly watching their spending on items like groceries and essential goods, opting for more affordable options.

However, Walmart's announcement will likely have a broad impact nationwide. Each week, around 255 million individuals globally shop at their physical locations and online, and remarkably, about 90% of people in the US reside within a 10-mile radius of a Walmart.

Speaking with CNBC, Walmart's Chief Financial Officer, John David Rainey, indicated that American shoppers should anticipate price increases starting at the close of May and continuing into June. During earnings call with analysts, he further noted that the retailer would need to reduce order volumes as it evaluates how sensitive consumer demand is to price changes.

Fortunately, at least five budget-friendly stores can serve as alternatives to Walmart for those looking to save.

Smarter Shopping: 5 Affordable Alternatives To Walmart

1. Amazon

Amazon offers a vast selection of groceries and home essentials, often at competitive prices due to their efficient in-house production and shipping. Their Prime subscription provides free, fast delivery and other perks, potentially saving you money on shipping fees and offering overall value.

2. Aldi

This no-frills German retailer offers a limited but carefully selected range of groceries and household items at significantly lower prices than traditional supermarkets. Aldi minimises costs through a smaller staff, no in-store music, and unique practices like requiring a deposit for shopping carts—savings passed on to the consumer. Aldi is a strong contender for budget-conscious shoppers who prioritise low prices over a wide variety.

3. Target

While offering a shopping experience similar to Walmart, Target distinguishes itself with generally higher-quality goods, particularly in categories like apparel and home furnishings.

Although often perceived as slightly more upscale than Walmart, Target frequently features sales and its popular Target Circle loyalty program, which provides personalised discounts and rewards. This makes it a competitive option for value-conscious shoppers. Keep an eye out for their own store brands, which can offer comparable quality at lower prices.

4. Tesco

Primarily operating in Europe, India, and Pakistan, Tesco is a major retailer known for competing directly with Walmart, offering a wide range of products at low costs. As the largest grocer in the UK, Tesco provides a high-volume, budget-friendly in-store and online shopping experience. For consumers in these regions seeking a broad selection without breaking the bank, Tesco is a strong, affordable alternative to Walmart.

5. Sam's Club

Like Costco, Sam's Club operates as a membership-based warehouse club. By offering products in bulk and featuring its private-label brands, Sam's Club can provide significant savings on groceries and household goods for members willing to buy in larger quantities.

While requiring a membership fee, the potential for lower per-unit costs makes it a viable option for families and businesses looking to reduce their overall spending compared to traditional retail.

Taking Control Of Your Grocery Budget

Beyond these five key players, other retailers like Kmart, Lidl, Costco, BJ's Wholesale Club, and Carrefour offer competitive pricing and diverse product selections. Exploring these alternatives can empower budget-conscious shoppers to navigate rising costs and find the best value for their needs.

For a company renowned for aggressive cost management and value pricing, Walmart's warning signals how deeply trade tensions are penetrating the American economy.

The message from America's retail giant is clear: even the most efficient cost-cutters have limits when facing the full force of a trade war. For shoppers, the race to find value has become more urgent than ever.