Major retailers promise a cheaper Thanksgiving, but there's a twist

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Target (TGT), Walmart's (WMT) meal kits swap national brands for private labels

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Food costs rose 2.7% in September, government data shows

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NielsenIQ: 58% of shoppers worry about food price inflation

By Siddharth Cavale

Nov 8 (Reuters) - Grocery giants Walmart (WMT), Target (TGT) and Aldi are trumpeting their Thanksgiving meal deals as more affordable than ever. But those retailers are doing exactly what shoppers are doing, trading down to cheaper private-label alternatives or offering fewer items.

Walmart's (WMT) meal this year features nine Great Value private-label brand items out of 15, compared with nine out of 21 brands last year - a higher percentage of in-house brands.

The company accomplished this by subbing in a stuffing mix and sidelining onions, celery and broth. Those switches allowed for a revamp with the turkey - changing to the well-known Butterball brand (96 cents a pound) from last year's Honeysuckle White (then 88 cents a pound).

The company says its meal kit now costs less than $40 and feeds 10, versus around $56 total to feed eight people last year. This year's 22 items, which include more than one of certain goods like green beans and corn, is down from 29 a year ago. Walmart (WMT) declined to comment.

TRUMP TALKS TURKEY

President Donald Trump, whose approval ratings on the economy have been sliding, mentioned Walmart's (WMT) reduced prices several times this week, noting a 25% decline in holiday costs from last year.

When a reporter pointed out on Friday that the basket contains less food, Trump said he had not heard that and blasted the assertion as "fake news."

The contents of the Thanksgiving baskets are not just symbolic. They mirror consumer preferences. A NielsenIQ survey conducted in September showed 58% of respondents are extremely concerned about food price inflation, with 31% saying they would choose store brands over national names whenever possible.

Food costs were up 2.7% in September from a year earlier, according to federal data. U.S. consumer sentiment weakened to a three-and-a-half-year low in early November, and the longest government shutdown in history has delayed SNAP food aid payments for low-income Americans, which could further squeeze households.

"One of our most-asked questions in the store right now is 'How do I save money on my food'?" said Stew Leonard Jr., CEO of the eponymously named Connecticut chain. "One of the things we recommend is definitely exploring private label."

Aldi, the German discount chain that built a reputation on private labels, is offering a $40 Thanksgiving spread for 10. Last year the basket cost $47. The store subbed out Butterball turkeys in favor of the cheaper Jennie-O this year, trimming about 30 cents per pound. The Butterball turkey is still available for purchase this year for 97 cents a pound, the retailer said in a statement.

Aldi also swapped out a single pie crust for a frozen two-pack and shaved a few cents off carrots, potatoes, and onions.

To assess the changes, Reuters compared Aldi's 2025 list and prices with a 2024 YouTube video from The Krazy Coupon Lady, a popular U.S. coupon and deal-finding platform that visited an Aldi store and provided a detailed breakdown of the 2024 list.

Target's (TGT) seven-item Thanksgiving meal kit included two notable changes. The Minneapolis-based retailer swapped in private-label brands for bread and frozen corn, dropping nationally recognized Del Monte green beans and Campbell's Cream of Mushroom Soup that were in last year's lineup. A kit designed for four costs under $20, compared to $20 a year ago.

A Target (TGT) spokesperson said its meal kit lineup can shift a little from year to year, depending on such things as what shoppers are asking for or what's in stock. As to when they shop for these items, she said shoppers wait until a week before Thanksgiving to make purchases.

(Reporting by Siddharth Cavale; additional reporting by Nandita Bose; Editing by David Gaffen and Patricia Reaney)