If you’ve made a recent trip to buy groceries — or any essential good — recently, you may have noticed your wallet felt a little lighter by the time you returned home.
That’s because the cost of almost everything, from food to clothing to used cars, have increased over the last month. And many U.S. consumers are feeling the pinch to their budgets.
Related: Walmart CEO addresses alarming problem for customers
In December 2024, the Consumer Price Index (CPI) rose by 0.4% compared to a month prior.
“The airline fares index rose 3.9 percent in December, after rising 0.4 percent in the previous month,” the report issued by the Bureau of Labor Statistics found. “The index for used cars and trucks rose 1.2 percent over the month and the index for new vehicles increased 0.5 percent. Other indexes that increased in December include motor vehicle insurance, recreation, apparel, and education.”
More Walmart:
Walmart customers outraged over popular product price increaseWalmart, Target, Costco make major 2025 announcementWalmart exec drops a bombshell about $840 billion market
It may be a new year, but it’s looking like stubbornly high inflation may just follow us into 2025, so shoppers are looking to snag deals where they can find them.
This is good news for major retailers like Walmart (WMT) and Costco Wholesale (COST) , which are prized for their competitive prices and wide selection of daily essentials.
A Walmart associate stocks a produce display.
Image source: Joe Raedle/Getty Images
Walmart dominates the budget market
While the cost of many goods and services may have increased in recent months, it’s not all bad news for customers.
In order to attract customers and keep their foot traffic up, retailers are forced to keep their prices competitive — which typically means keeping them as low as possible.
Related: Popular retailer making major change to how you shop
Most of us tend to favor convenience and price over name brands, especially for our everyday items (such as paper products or cleaning supplies). Largely speaking, it’s no longer necessary to save up and buy something that might last you several decades. Goods are cheaper and easier to come by, which means the shopping experience is largely leveled out and accessible for nearly every customer without needing to break the bank.
This is, in part, why Walmart is the number one grocer in the United States — and the number one retailer in the world. Its goods tend to be more affordable than competitors, and with such a large footprint, most consumers choose to shop there than other niche stores.
Walmart moves into new segment
But Walmart wants to be known for more than just affordability. It also wants to offer luxury accessibly.
Walmart said in mid January that it will host Rebag, a luxury brand reselling service, on its massive third-party marketplace, Walmart Marketplace. The service will offer thousands of brand name handbags, watches, jewelry, and other accessories that have been used or are vintage.
Some of the brands featured on Rebag include:
Louis VuittonHermèsChanelGucciChristian DiorSaint LaurentFendiPradaBottega Veneta Goyard
It also features a shop on Bloomingdales, but Rebag’s Walmart deal marks Rebag’s first foray into mass retail. The privately held company also said it will offer Walmart customers access to about 100 items exclusively.
“This strategic move amplifies Walmart’s ongoing efforts to introduce customers to emerging categories and brands,” a Walmart spokesperson said of the deal. “The result has been a robust e-commerce growth trajectory, with more than 30% sales surge in each of the past five quarters for Walmart Marketplace.”
Related: Veteran fund manager delivers alarming S&P 500 forecast
