The beginning of a new year promises the potential for change and good things to come.
And in the retail industry, things are already starting to look up.
Many customers are still reeling from sticker shock as the price of many grocery items has increased in recent quarters.
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Most recently, the monthly Consumer Price Index rose 0.3% overall in November. Many key goods and services rose in cost compared to just one month prior, including:
Food at home: increase 0.4%Food away from home: increase 0.5%Energy: increase 0.2%New cars: increase 0.6%Used cars: increase 2.0%Apparel: increase 0.2%Medical care services: increase 0.4%Shelter: increase 0.3%
“Out of nine grocery staples defined by the Bureau of Labor Statistics, the cost of a dozen eggs increased the most over last year [2023], from $2.06 to $3.82, up 85.0%,” USA Facts writes.
“Other grocery staples that cost more this year include beef, chicken, tomatoes, whole milk, and bread. Beef, chicken, tomatoes, and whole milk increased more than the 1.3% average for groceries.”
In fact, food prices are up about 28% overall compared to just five years ago (i.e., before COVID-19).
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Due to various factors, including the spread of bird flu, remaining supply chain issues, and corporations unwilling to give up bumper profits from the pandemic, most foods on your local grocery shelf remain higher than they were a few years ago.
A Costco location is busy, full of people shopping for groceries and home goods.
Image source: Brooks Kraft LLC/Corbis via Getty Images
Some key grocers gaining market share
Some retailers have gotten smart, however. As prices rise across the country, large corporate incumbents, including Walmart (WMT) and Target (TGT) , have promised to expand their grocery offerings and keep prices low for the cost-conscious consumer.
Walmart’s management has been particularly outspoken about its grocery expansion efforts. In 2024, the retailer announced it would return the price of many goods, including food, to pre-inflation levels.
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Such decisions are good for business. Walmart is already the number one grocer in America. It has the brick-and-mortar presence to retain that market share comfortably, and it continues to scale its online operations to deliver to many customers who prefer to pay extra for expedited grocery delivery in the name of convenience.
At the moment, Walmart doesn’t disclose the number of Walmart+ customers who pay $98 for free delivery, savings on gas, and other perks. “I don’t want it to become some proxy for the value of the company,” CEO Doug McMillon told investors recently.
Top grocers planning expansion
And while certain figures aren’t being made public, it’s no secret that grocery remains a part of several large corporate retailers’ 2025 success plan.
Walmart, Target, Trader Joe’s, and Costco (COST) all anticipate a major expansion in the coming year. The stores plan to open dozens of new locations in 2025 in several high-population and growing areas.
In total, the expansion spans across 10 states. They are:
Walmart:
Mountain View, CaliforniaEastvale, CaliforniaCypress, TexasFrisco, TexasMelissa, TexasCelina, TexasTuscaloosa, AlabamaMilton, FloridaPace, Florida
Sam’s Club:
Tempe, Arizona
Target:
South Lake Tahoe, CaliforniaSurprise, ArizonaDenton, Texas
Trader Joe’s:
Northridge, CaliforniaSherman Oaks, CaliforniaTarzana, CaliforniaSeattle, WashingtonBellingham, WashingtonMurfreesboro, TennesseeBerwyn, PennslyvaniaStaten Island, New YorkHoover, AlabamaTwo locations in Washington, DCRockville, Maryland
Costco:
Brentwood, CaliforniaGenesee County, MichiganHighland, CaliforniaProsper, TexasSharon, MassachusettsWeatherford, Texas
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