Walmart Rolls Back Prices on 11,000 Items as U.S. Value War Intensifies

American consumers are demanding perceived value that lasts longer than just low prices, causing major retailers' pricing strategies to shake once again. Costco and Walmart are both emphasizing membership bulk purchasing and price reductions, but as the burden of living expenses spreads across healthcare, housing, and finances, simple discounts are proving insufficient.

Fortune noted in a column on the 21st that the potential burden crisis in the U.S. resembles issues faced 25 years ago with low-cost product strategies in emerging markets. The argument is that companies must not only lower prices but also find solutions that reduce performance, convenience, and total costs together.

Official indicators show similar pressures. The U.S. Federal Reserve reported in its 2025 household economic report released in May 2026 that 73% of adults responded that they were financially 'okay' or 'comfortable,' but rising prices remained the biggest financial concern. The perceived deterioration among those aged 18-29 and low-income groups was also pronounced.

The Pew Research Center revealed in an April 2026 survey that 73% viewed health insurance costs as a 'very big problem,' 66% cited inflation, and 64% mentioned budget deficits. This indicates that the burden of living expenses is recognized not just as an issue of grocery prices but as a broader problem encompassing healthcare, housing, and finances.

Previously, it was reported that continued pressure from living costs could reduce consumer spending power and affect economic outlooks, interest rate expectations, and dollar asset flows. Even if inflation rates slow down, the essential expenditure burden that households feel monthly may take longer to decrease.

Costco ($COST) is at the forefront of this trend. The company reported net sales of $69.154 billion (approximately 96.55 trillion won) in its third-quarter results for the fiscal year announced on May 28, 2026. This represents an 11.6% increase from the previous year, with same-store sales in the U.S. also rising by 9.4%.

Costco's membership model is structured to lower unit prices through bulk purchasing. In a high-inflation environment, this can work to the advantage of consumers looking to secure more quantity for the same amount of money. However, the need for storage space, initial expenditure, and membership fees means that this solution may not work for all consumers.

The Fortune column suggested that the bulk purchasing and membership structure could already pose access barriers for many Americans. A Northwestern University study indicated that the average income of Costco-using households is $81,200 (approximately 113 million won). This is not significantly different from the 2024 real median household income of $83,730 (approximately 117 million won) reported by the U.S. Census Bureau, making it difficult to definitively categorize membership income as a single figure.

Walmart ($WMT) is moving more directly towards price reductions. Fortune reported that Walmart is reinvesting $2.9 billion (approximately 4.5 trillion won) from tariff refunds into price cuts and improving customer experiences, operating over 11,000 items in a rollback state. This reflects a trend of absorbing some price burdens through adjustments in company policy.

The same direction is evident in Walmart's public performance data. The company's U.S. comparable sales increased by 4.3% for the quarter ending April 30, 2026. The low-price policy and omnichannel expansion were presented as key pillars supporting consumer influx.

The issue of tariff refund allocation by major retailers has been contentious regarding consumer refunds. Previously, it was reported that the structure of tariff refunds does not automatically return to consumers and is more closely related to absorbing cost increases rather than being a source for price reductions. Walmart's reinvestment policy can be seen as an example of handling the same burden through pricing policy.

Consumer trends are also shifting towards discount channels and private brands. In the second quarter of 2026, Costco, Walmart, and Aldi captured market share from Kroger and Albertsons, with private brand sales projected to reach a record $282.8 billion (approximately 394.79 trillion won) in 2025.

This change is not unfamiliar to Korean readers. As high inflation persists, consumers prioritize perceived value over brand loyalty. This is why channels that allow for predictable spending, such as warehouse stores, private brands, and online grocery shopping, are gaining strength.

Among the past industrial examples cited in the Fortune column, GE Healthcare's low-cost CT strategy for China was confirmed in a 2010 GE press release. At that time, the company emphasized localization, low cost, and high quality with the introduction of the Brivo CT 325 and 315 for the Chinese market. However, some manufacturing cost figures mentioned in the column were not fixed to independent original sources and were excluded from the article body.

The impact of the burden of living expenses in the U.S. on the virtual asset market requires further confirmation. The current confirmed fact is that consumers are becoming more sensitive to value over price and to predictability of expenditures over short-term discounts.

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