Walmart, the largest retail chain in the U.S., is doubling down on attracting holiday shoppers after recently spotting a concerning pattern of customer behavior brewing in its stores. 

During the second quarter of this year, Walmart saw its U.S. comparable sales increase by 4.6% year over year, according to its latest earnings report. Additionally, recent data from Placer.ai revealed that foot traffic in Walmart stores increased by 1% year over year during the quarter.

However, during an earnings call in August, Walmart CEO Doug McMillon stated that the company has observed a shift in shopping habits among middle- and lower-income customers in stores due to recent economic pressures. 

“We see more adjustments in middle- and lower-income households than we do with higher-income households,” said McMillon. “In discretionary categories where item prices have gone up, we see a corresponding moderation in units at the item level as customers switch to other items or, in some cases, categories.”

Many consumers nationwide have grown concerned about tariffs leading to higher prices for goods and services, which is prompting them to reduce their spending. 

How U.S. consumers are battling tariffs in 2025:

  • Approximately 87% of consumers are concerned about the impact of tariffs on their finances or shopping, while 63% are worried that tariffs will raise the price of everyday goods.
  • Also, 82% of consumers plan to change their shopping habits in response to tariffs, which includes cutting back on nonessential spending, searching for sales or coupons, delaying nonessential or big-ticket purchases, and switching to lower-priced retailers or discount stores. 
  • In addition, 77% are concerned about a recession within the next year.
    Source: Numerator

“Changes in consumer sentiment are a leading indicator for changes in purchasing behaviors, and if consumers remain this pessimistic about the future of the U.S. economy, we can expect cutbacks in consumption going forward and a potential recession later this year,” said Numerator Chief Economist Leo Feler in a statement in April. 

Many consumers are planning to spend less on their Thanksgiving meal this year.

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Walmart makes major change to annual holiday deal amid tariff pressures

As consumer sentiment wanes, Walmart recently launched its annual Thanksgiving meal deal to help attract price-conscious consumers during the holiday season. 

The meal serves 10 people for less than $40 and includes items such as a Butterball turkey, russet potatoes, Stove Top Turkey Stuffing, and Great Value Green Beans.

While Walmart’s Thanksgiving meal basket costs about 25% less and feeds two more people than it did in 2024, it features fewer items compared to last year’s. 

Walmart’s 2024 Thanksgiving meal basket had 29 items; this year’s only contains 15. It is also missing several items that were featured in last year’s basket, such as a pecan pie, sweet potatoes, mini marshmallows, celery stalks, muffin mix, and yellow onions.  

Related: Walmart risks losing $2 billion from alarming threat to shoppers

It also substituted some products in this year’s basket. For example, instead of 12 sweet Hawaiian rolls, it includes 12 dinner rolls. Walmart also replaced French’s crispy fried onions with Kinder’s.

The move from Walmart comes as it faces higher costs due to tariffs, prompting the company to explore various options to keep prices low for customers. 

“With regard to our U.S. pricing decisions, given tariff-related cost pressures, we’re doing what we said we would do,” said McMillon during the earnings call in August. “We’re keeping our prices as low as we can for as long as we can. Our merchants have been creative and acted with urgency to avoid what would have been additional pressure for our customers and members.”

Walmart’s competitors have also recently launched cheap Thanksgiving meal deals to attract consumers. Last week, Target announced the return of its Thanksgiving meal for four deal, now available for $20, its lowest price yet. 

Amazon has also recently unveiled its $25 Thanksgiving meal deal, which can feed a family of five. BJ’s Wholesale even began offering its members a free Butterball turkey if they spend $150 or more in a single in-club transaction. 

Many retailers are launching lower-priced Thanksgiving meal deals at a time when many consumers plan to make significant adjustments to their Thanksgiving shopping to dodge higher prices, according to a recent survey from consumer intelligence company NielsenIQ.

How Americans plan to avoid higher costs for Thanksgiving 2025:

  • Roughly 58% of consumers are extremely concerned about food price inflation.
  • To save money, 25% of shoppers plan to purchase more private-label items this Thanksgiving, while only 5% will prioritize name brands.
  • Even 25% of households plan to reduce or remove alcohol from their Thanksgiving celebrations to save money.
  • Also, 15% of households plan to use “buy now, pay later services” for their Thanksgiving shopping, while 18% are considering it.
    Source: NielsenIQ

“Our data continues to show that uncertainty is a running theme in 2025, and it’s reflected in how consumers are celebrating the holidays with a sense of tradition while fitting into their budgets and lifestyles,” said Rachel Bonsignore, vice president of NIQ Consumer Life, in a press release. 

Walmart and its rivals face a major threat this Thanksgiving 

Retailers nationwide are also making their Thanksgiving meal deals more generous this year as they prepare to face the impact of the current pause on Supplemental Nutrition Assistance Program (SNAP) benefits, which provide food assistance to low-income consumers with monthly funds via an EBT card to purchase groceries.

SNAP food benefits were put on hold at the beginning of November due to the current government shutdown, which is currently in talks to conclude.

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The Trump administration, however, plans to restart SNAP sometime this month, providing only partial benefits by using money from an Agriculture Department contingency fund. 

This could have a significant impact on holiday shopping this year, as millions of Americans are SNAP recipients. Recent data from the USDA found that 41.7 million Americans, representing 12.3% of the population, received SNAP benefits in fiscal year 2024.

“Even if the reduced SNAP benefits arrive soon, there will still be significant pressure on lower-income Americans, and this will lead to reduced purchasing for non-food items, including holiday spending,” said retail analyst Bruce Winder in a statement to TheStreet.

Related: BJ’s Wholesale announces free offer for customers amid struggles