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Walmart, Target face a new price problem as costs surge. I walked into a big-box store recently for what I thought would be a quick trip. Laundry detergent, toothpaste, paper towels, and a couple of things I'd forgotten to put on my list, so clearly nothing fancy, and far from being a splurge. Still, when I looked at the total at checkout, I found myself mentally adding up what the same basket might have cost a year ago. I can't tell you exactly when those everyday purchases started feeling more expensive. I do know that the bill seemed harder to ignore. Retailers know that feeling matters. Walmart (WMT) and Target (TGT) are looking to convince shoppers they can still offer value. But they're facing a problem of their own. The Labor Department said producer prices jumped 1.3% in September, the largest monthly increase since March 2022, as reported by Reuters. Gasoline and transportation costs shot up, adding to pressures that retail executives had already been describing. So that begs the question of how long retailers can keep prices down without hurting their profits. Wholesale inflation jumps 1.3% as Walmart and Target fight to keep prices low. The latest inflation report just dropped, and it came with an unpleasant surprise for retailers already trying to win over cautious shoppers. The Labor Department said producer prices jumped 1.3% in September, the biggest monthly increase since March 2022. Prices were up 6.3% from a year earlier. Unlike the inflation numbers consumers see at the checkout counter, the Producer Price Index tracks what businesses receive for goods and services. Digging into the details, producer gasoline prices surged 20.3% in September, while prices for transportation and warehousing services rose 3.4%. Moving goods from suppliers to distribution centers and store shelves isn't free, and fuel can quickly make those trips more expensive. The surprise report comes at an inopportune time for Walmart and Target. Both have spent considerable effort convincing shoppers they can still stretch their budgets, even as households rethink purchases that aren't strictly necessary. Price cuts and promotions may help bring customers through the door, but they also leave less room to absorb unexpected expenses. For some households, even a small price increase changes the calculation. Though retailers buy different products under different contracts. They can negotiate with suppliers, adjust transportation plans, accept smaller margins, or decide which prices to change. Still, the report poses a question that becomes especially important ahead of holiday shopping, and their executives have already offered some revealing answers. Walmart's fuel costs and Target's pricing strategy expose the retail squeeze. In its Aug. 20 earnings presentation, Walmart identified higher fuel costs in distribution and fulfillment as a drag on gross-margin improvements. Walmart CEO John Furner explained the company's broader pricing approach in a September 25 letter to customers: "We lower them when we can pass savings along. Sometimes they rise because an item costs more to buy or transport." More Walmart: Those costs add up. On Walmart U.S.'s $125.2 billion in quarterly sales, my calculations show that a hypothetical 0.1-percentage-point gross-margin decline would represent nearly $125 million in lost gross profit, assuming unchanged sales. Similarly, Target is approaching the problem from another direction. During the company's Aug. 19 second-quarter earnings call, CFO Jim Lee described negotiating with vendors, changing sourcing arrangements, and adjusting merchandise to limit tariff-related costs. "Those tactics have helped us to reduce tariff pressure while continuing to deliver the combination of style, design, and value consumers expect from Target." Target also recorded a $994 million pretax tariff-refund benefit during the quarter, showing just how unusual cost items can impact profitability. Lee was discussing tariffs rather than September's fuel inflation, but the underlying challenge is similar. Dollar General is seeing the problem from the shopper's perspective. During its Aug. 27 earnings call, CEO Todd Vasos described how financially stretched customers are changing their shopping habits. "She continues to come. She comes more often, but she buys less on each trip." Vasos linked that behavior to sticky inflation and gasoline prices approaching $4 a gallon. CFO Donny Lau also warned that fuel costs will likely remain elevated through year-end, though the company managed to offset some of those costs. Costco offers a useful contrast. During its Sept. 24 earnings call, CFO Gary Millerchip said lower contracted shipping rates had largely offset higher fuel surcharges. Moreover, the Richmond Fed captured the problem in one striking example, as reported by Bloomberg. Its Oct. 14 Beige Book described a regional grocer paying more to transport a head of lettuce from California than the lettuce itself cost. Customers, meanwhile, were resisting higher prices. Albertsons CEO Susan Morris also addressed the tension during the grocery chain's Oct. 13 earnings call: "Fuel prices are elevated, and inflation remains stubbornly high for our customers and in our P&L." Albertsons also reported weaker customer traffic and unit sales, underscoring the difficulty of passing along additional costs. Retailers clearly have ways to protect shoppers, from supplier negotiations to better shipping contracts. But those strategies have limits, especially when customers are already watching every dollar. Holiday shopping could force retailers to choose between lower prices and profits. Higher costs don't automatically mean shoppers will pay more at checkout but naturally someone needs to absorb them, and the holiday season could make the decision a lot tougher. Retailers have several options. They can accept smaller profit margins, find operating savings, negotiate better supplier terms, or selectively raise prices. Each approach comes with trade-offs. Walmart's enormous scale gives it pricing power and opportunities to spread costs across its operations. Target is trying to rebuild customer loyalty through competitive pricing, while Costco has shown how favorable freight contracts can offset some fuel expenses. Not every retailer has those advantages. During Albertsons' Oct. 13 earnings call, CEO Susan Morris acknowledged that elevated fuel prices and stubborn inflation were pressuring both customers and the company's income statement. That's especially concerning heading into the holidays. Aggressive discounts might attract shoppers and boost sales volumes, but they could also squeeze margins. Pulling back on promotions risks sending budget-conscious customers elsewhere. I'll be watching diesel and freight prices, retail traffic, promotional activity, and gross-margin guidance in upcoming earnings reports. Those numbers should offer clues about whether retailers are successfully absorbing costs or beginning to pass more of them along. Walmart, Target, and their competitors have spent years promising better value. The question now is how long they can keep that promise without sacrificing profitability.

FDA warns Amazon and Walmart over unapproved herpes treatments. Discover more World news analysis Economic news updates The U.S. Food and Drug Administration issued official warning letters to Amazon and Walmart for distributing unapproved herpes treatments through their supply chains. The regulatory action targets online sales of alternative remedies marketed as creams and sprays without clinical proof of efficacy. In plain english: the clinical takeaway. * Unverified Claims: The cited products - including FemiClear and HerpCare - lack FDA approval, meaning clinical trials have not proven their effectiveness. * Risks of Delay: Relying on alternative topicals instead of proper medical care can postpone effective treatment, potentially leading to severe complications. * Transmission Danger: Improperly managed infections increase the risk of transmission to sexual partners or neonates. Unapproved herpes treatments discovered in fulfillment networks. Federal regulators flagged e-commerce giants Amazon and Walmart following undercover purchases conducted by agency staff. The inspections revealed that third-party vendors listed various alternative treatments while the major retailers stored and shipped the items through their fulfillment networks. Regulators emphasized that marketing these items under the umbrella of alternative medicine or homeopathic dilutions does not exempt them from federal requirements. The regulatory warnings encompass a specific group of topical formulations that claim to treat or manage herpes infections. Amazon's inventory featured nine flagged items, including formulations marketed under the names FemiClear, HClear for Men, HerpCare, Herstat GST, and RoyceDerm. Walmart's distribution network included three of the identical products. Public health Risks of delayed intervention. The regulatory agency highlighted serious health consequences linked to substituting professional care with unverified alternative treatments. Medical authorities emphasize that treatment requires diagnosis and supervision by a licensed healthcare provider. Get Health Tips Discover more Global headlines service News website advertising Delaying effective medical care can trigger severe complications, including infertility, sepsis, and the risk of transmitting the infection unknowingly between spouses. Furthermore, inadequate management facilitates the transmission of human immunodeficiency virus (HIV) and poses risks of neonatal herpes to newborns if transmitted from pregnant mothers. When to consult a doctor. Anyone experiencing concerns must consult a licensed healthcare professional immediately. Professional evaluation ensures appropriate care and prevents severe secondary health outcomes. Get Health Tips References. * U.S. Food and Drug Administration (FDA). Official Warning Letters to Amazon and Walmart regarding unapproved herpes treatments. Worth a look Discover more Get Sports Gear Priya Deshmukh Senior Editor, Health Deshmukh is a practicing physician and renowned medical journalist, honored for her investigative reporting on public health. She is dedicated to delivering accurate, evidence-based coverage on health, wellness, and medical innovations.

Kroger, one of America's oldest grocery chain to layoff thousands; largest in its 143-year history, here's what CEO told employees at townhall. TOI Tech Desk / TIMESOFINDIA.COM / Oct 13, 2026, 08:10 IST America's oldest retail chain Kroger Co plans to eliminate roughly 3,000 corporate positions over the next three years, marking a sweeping workforce reduction as new Chief Executive Officer Greg Foran moves to overhaul the grocer's management structure. The cuts represent more than one-third of Kroger's approximately 8,200 corporate staff, making the restructuring one of the largest corporate employees' reductions in the supermarket chain's 143-year history. Foran, a former Walmart executive, who joined the retailer in February this year, detailed the turnaround strategy in a memo to employees following a companywide meeting on Monday, October 12. The restructuring comes as America's largest traditional grocer contends with slowing top-line growth, fierce retail competition, and persistent inflationary pressures impacting consumer spending. The memo outlined plans to eliminate redundant functions across departments while modernizing daily operations. Kroger is increasingly turning to emerging technologies, including artificial intelligence, to automate workflows and drive efficiencies across its corporate network. What CEO Greg Foran told employees at townhall. The Cincinnati-based grocery giant announced the layoffs to its employees during an all-company call Monday, October 12. In the memo sent to Kroger employees obtained by the Business Courier, CEO Greg Foran wrote that the company's transformation will result in the company reducing its corporate workforce across multiple functions by about 3,000 roles. The moves would take Kroger from having about 8,200 corporate workforce employees to roughly 5,200. "As a company, we have made great progress on many fronts with our customers. We started reducing prices and improving our customer experience in stores and online, and we made investments in simplifying our associates' lives through technology," Foran wrote. "Our business is becoming leaner, more focused and more competitive. We are working to be more agile; more precise in our execution; and deliver benefits to our customers, associates and our shareholders. " CEO Foran reportedly said that the changes are intended to reduce duplicative work, lower prices and redirect investment toward store employees as the grocer integrates AI into workflows. Kroger expects to start sharing details about the affected roles in the coming months. The reductions will help the company put more resources toward cutting prices, improving shopping experience and investing in frontline employees, Foran wrote in the memo. Foran, who helped turn around Walmart's US business in the mid- to late 2010s, is implementing Kroger's biggest price cuts in years, while making service in stores friendlier and faster. The operator of Fred Meyer and Ralphs chains is also taking a more aggressive approach toward supplier negotiations. The company laid off nearly 1,000 corporate employees last year to cut costs. The three-year downsizing marks the latest decisive shift under Foran's leadership as Kroger works to defend its market share against deep-discount rivals and major big-box retailers. Albertsons wants Kroger to pay $9 billion over failed Kroger deal. Incidentally, the layoffs come at the same time when rival grocery chain Albertsons Cos is demanding that Kroger Co pay more than $9 billion for the collapse of the largest US grocery chain merger in history. Albertsons claims Kroger "willfully breached" its contractual commitments and should pay more than $9.3 billion, including a premium stockholders would have gotten and a $600 million termination fee. End of Article