While Walmart has a reputation for having low prices, that isn’t always the case.
You can sometimes find a very expensive item for sale or even find cheaper prices elsewhere.
Considering that Walmart has price-matching options and tries to keep its prices low, you may wonder why certain products at Walmart are actually quite expensive.
Why Is Walmart So Expensive? (10 Reasons)
The average amount spent at Walmart largely depends on the individual.
However, it’s not uncommon for a family to spend $100 or more shopping at Walmart.
Certain factors like specific, pricey items, brand name prices, and factors affecting supply all drive up the prices at Walmart.
Let’s look at these factors in more detail.
1. Eggs
One of the reasons Walmart is expensive is the price of eggs.
If you’ve gone shopping at Walmart, then you may have noticed the price of eggs has increased significantly.
Eggs are often a staple purchase for many families.
Some buy them to make fried eggs or scrambled eggs.
Others buy them for baking or as an ingredient in other dishes.
Because eggs are so versatile, a lot of people end up buying them.
The problem though is that eggs have become expensive.
There are several reasons behind the price increase as well.
Crop shortages have impacted the feed given to chickens.
Since farmers have to pay more to feed their chickens, they sell the chicken products for more money.
They have to make up for their costs.
Labor shortages have also impacted prices.
Fewer people are available to work in egg factories or farms.
There are fewer still who drive trucks to deliver those eggs to grocery stores.
This impacts the supply of eggs available which also increases their prices.
Another big factor is whether the eggs come from organic-fed chickens or not.
Those chickens tend to have even more expensive feed given to them.
All of these factors end up making eggs quite expensive.
Since eggs are something a lot of people buy at Walmart, they’re going to notice that their grocery bill is higher.
2. Cereal
Another frequent purchase from Walmart is cereal.
Families often buy cereal to feed their children at breakfast.
Some adults also eat cereal since it provides fiber and other essential nutrients.
The problem with buying cereal is that it’s also become very expensive.
In particular, General Mills has raised its products by significant percentages.
That impacts products from cereal to certain baked goods and fruit snacks.
In regards to cereal, certain brands like Cinnamon Toast Crunch, Lucky Charms, and Wheaties are just some of those that have had their prices raised.
General Mills explained that a few factors had increased their input costs.
Since their input costs are higher, they wanted to ensure their output prices were high enough that they were able to earn enough profit to continue to grow as a company.
There were a few factors, in particular, that have led to increased input costs.
General Mills cited that increased labor costs were one of the reasons it raised prices.
With workers earning higher wages, it means that General Mills is paying more to keep workers in their factories.
Labor shortages have also impacted its input costs.
They’re unable to get enough people into their factories to keep producing high volumes of cereal.
This impacts the supply of cereal available in the market.
Since there are fewer boxes on the shelves, it comes down to higher demand on the consumer end.
Consumers who have the most money are going to be able to buy the more expensive cereal boxes.
This makes Walmart expensive because cereal is another common type of food that many families need to buy.
Since cereal is more expensive, families are going to notice that their grocery bill at Walmart is also more expensive.
3. Canned Soup
Canned soup is another major type of food that a lot of people buy at Walmart.
Canned soup is a great purchase because it’s usually relatively cheap.
It’s also full of vegetables and sometimes meat, too, to provide a nutritious meal.
Because it’s cheap, it’s easy to feed a family on a few cans each week.
Unfortunately, canned soup has also become expensive at Walmart.
Campbell’s, one of the leading canned soup manufacturers, has recently raised its prices.
While Campbell’s soup was once known for its cheap price, those days are long gone.
Campbell explained that inflation was the primary reason behind their price increase.
They also stated that problems with supply made it difficult for them to meet demand.
A common problem with the supply chain is the lack of available truck drivers.
Fewer people want to drive trucks for a living.
As a result, it means fewer goods are getting shipped out to grocery stores.
Since this impacts the available supply, it means that demand is going to be higher.
Whenever demand is higher than supply, the price of that product increases.
Campbell’s has increased the price of its products to help offset its costs.
It’s allowed retailers to choose from there whether they want to absorb the cost themselves or pass it on to consumers.
Walmart has clearly decided to pass the cost on to consumers as Campbell’s soup is far more expensive there than it was before.
This makes Walmart expensive because a lot of people buy soup to feed themselves or their families.
Since soup is more expensive, their grocery bill is more expensive.
4. Brand Names
Another big reason that Walmart is expensive is the role that brand names play in pricing.
When you shop at Walmart, you have a huge selection of different brand-name products.
Walmart also sells generic brands.
It even launched its own in-house brand name.
Brand names are more expensive than generic brands for a few reasons.
The major one is that brand names have usually spent a lot of money on advertising and marketing.
That advertising sells the idea that the brand is the best choice for that particular product.
They tend to do what they can to provide a high-quality product to further increase their reputation.
When a brand name is successful, a lot of people end up choosing it over the generic brand because they’re more familiar with it.
They’ve seen the commercials and heard their friends talk about how they liked it.
It’s less of a risk to buy it since they know they’re going to get a decent quality product.
Brand names are then able to sell their products at slightly higher prices than generic brands.
Sometimes they even sell at significantly higher prices than generic brands.
They know that customers are more likely to choose their product over the cheaper version.
This makes Walmart expensive because you often have a huge selection of different brand-name products.
Walmart has tried to introduce its own products that are a bit cheaper, but it’s still working on advertising its products.
At present, most brand names are still more trustworthy than unknown brands.
This makes Walmart expensive because it means a lot of people are making their bills more expensive than they need to be.
By buying generic brands, they could save a bit of money.
5. Quality Doesn’t Match The Price
Another reason Walmart is expensive is that its perceived quality doesn’t always match the price.
That perception also makes Walmart seem expensive.
For example, a lot of people go to Walmart to buy groceries.
They don’t always go to Walmart to buy home goods or electronics.
That’s because there is a perception that Walmart’s electronics or goods aren’t high in quality.
Consumers would rather get big-ticket items like new TVs, gaming consoles, and other electronics at a store like Best Buy.
At Best Buy, for example, they know that they’re getting a high-quality product at a reasonable price.
Since Walmart has a reputation for selling products at low prices, it can become a double-edged sword.
Low prices also suggest that the product itself is of low quality.
When people buy electronics or other expensive items, they don’t want something that’s low quality.
They’re looking for something that will be worth what they’re paying for.
When it comes to Walmart, the perceived value of the electronic item doesn’t match the price tag.
The product seems more expensive than it actually is.
This makes Walmart seem expensive in turn.
6. High Fuel Costs Affecting Supply Costs
There is no question that high fuel costs are also making Walmart expensive.
Walmart has a fleet of trucks that it relies on to deliver supplies to its stores.
Those trucks use fuel as a power source.
When fuel prices are high, it costs Walmart more money to keep their trucks fueled up and on the road.
The problem with fuel prices is that they’re volatile.
They might be very expensive for a few days, then suddenly drop in price out of nowhere.
Then the price might skyrocket again after a day or so.
This can make it difficult to plan out when to fuel up.
You may want to try and hold out until prices drop again, but then you put yourself at risk of running out of fuel.
Walmart’s trucks are constantly on the go.
They have to keep resupplying the stores to ensure they have the merchandise that customers want to buy.
If the product isn’t there, then Walmart is losing money.
High fuel costs make the supply chain more expensive.
Not only does it impact Walmart’s own fleet, but it also impacts its suppliers.
For example, the brands that fill Walmart’s stores are feeling the pinch, too.
They have to pay high fuel prices as well to get materials to their factories.
That makes their products more expensive for Walmart to buy.
As such, Walmart has to offset those costs with higher prices on its products.
7. Shortages
Walmart is also expensive because of shortages of certain products.
Some brands are facing serious problems.
Like those listed earlier, some manufacturers are struggling to produce enough goods to meet demand.
Whether it’s because of a shortage of materials or labor, some factories aren’t able to produce as much as they once did.
A lot of those problems stem from the COVID-19 pandemic.
It shut down several factories or greatly reduced the workforce.
It also impacted supply chains and the ability to move products from one place to the next.
When a shortage occurs, the price of the existing products increases.
It means there’s only so much of that product available.
If the product is in high demand, consumers are going to be paying higher prices for it.
The idea is to make the price high enough that some consumers will look for another product that’s cheaper.
This lowers demand to reach an equilibrium with supply once more.
If you see expensive prices at Walmart, it could be due to a shortage of that specific product.
8. Other Stores Are Cheaper
Walmart has the reputation of being an inexpensive store.
It boasts that it has the lowest prices around.
It even has a system where it matches lower prices if consumers can prove that they found a cheaper price elsewhere.
That said, Walmart isn’t actually the cheapest store around.
A quick trip to Dollar General, for example, or even Aldi will reveal that they sell certain products cheaper than Walmart.
Walmart no longer looks as cheap when you find other stores that sell certain products at lower prices.
9. Fewer Coupons Than Other Stores
Another reason Walmart is expensive is that they don’t offer as many coupons as other stores.
The main reason for this is that Walmart already tries to make its products as cheap as possible.
They do run a few sales now and then, but when it comes to its coupons, it’s usually quite limited.
As such, the store ends up becoming quite expensive.
You’re able to save money on their low-cost items, certainly, but you’re not able to save as much money as you could because they don’t offer too many coupons.
It’s worth comparing their coupon policy to other stores.
Some stores have tons of coupons that you can use.
There’s a whole niche of people who know how to use coupons to bring a $1,000 shopping trip down to a few cents, for example.
You won’t find the sorts of coupons that allow you to do that at Walmart.
Walmart is expensive because their coupons aren’t expansive.
10. Inflation
A final reason Walmart is expensive is inflation.
There’s no question that inflation is behind a lot of the price increases at the store.
Inflation makes prices increase because it is a result of rising costs.
When manufacturers face higher costs, they have to sell their products at higher prices.
Walmart then needs to sell at a higher price because they need to make up for its own costs.
The consumer is the one who ends up paying the highest price.
Walmart is expensive because of the role inflation is playing in raising costs.
Conclusion
Walmart is a store typically known for cheap prices.
However, due to certain brands raising prices, supply problems, and inflation, Walmart has become a lot more expensive.
