Costco, Target and Walmart are in a price war | CNN Money

All four companies have said in recent months that they lowered prices.

Costco: “Price is at the top of our list,” Costco chief financial officer Richard Galanti told investors on Friday. “When prices are going down…we want to be the first to go down.”

Costco (COST) is using its tax cuts savings to invest in higher wages for workers and lower prices for food, clothing and home essentials.

Walmart: “Price still matters. There are a lot of Americans that are counting every penny and every dime,” CEO Doug McMillon said at Walmart’s shareholder meeting last week.

Walmart’s prices fell close to 4% from February through April, led by cheaper Cheerios, Heinz Ketchup and Old Spice body wash, according to a recent Raymond James survey. Cheerios fell by more than 40%. Walmart’s prices for nationally-branded food were actually lower than both Dollar General and Family Dollar’s.

Walmart (WMT) is the pricing leader, and it is forcing rivals to match its downward moves, according to Wolfe Research analyst Scott Mushkin. “The industry’s fate goes squarely through Bentonville,” he said.

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Costco, Target and Walmart are in a price war.