Grocery stores lower prices as consumer pressure builds

Many grocery stores are lowering prices in order to stay competitive during the pandemic.
1:37 | 09/05/20

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Transcript for Grocery stores lower prices as consumer pressure builds
And next tonight, for the first time in months, prices at the supermarket are lower after millions of Americans lost those extended unemployment benefits, stores are starting to feel the pressure. Here's ABC's Deirdre Bolton with "Your money." Reporter: Tonight, many grocery stores around the U.S. Doing something they haven't had to do in months -- drop prices. During the pandemic, it was at regular price probably $7.99. This current week, we are running an advertisement of three for $10. Reporter: Why? Because the pressure to do so has hit hard and suddenly. You don't want to lose your customer base, and one way is to cut prices. Reporter: Ironically, the pandemic has been a boon for the grocery business, until recently. In March, April and may, sales were up on average by 32% by volume across the U.S. A key factor? People getting those stimulus checks. So, they were putting more money towards groceries and buying essential items for their homes. Reporter: The federal government ended the extra $600 weekly unemployment payments in July. Big grocery chains anticipating a drop in demand. Walmart is dropping their prices. They have to stay competitive. Stop and shop is probably doing the same thing. Reporter: And so are independent grocers, such as Kelvin Rodriquez. People are not spending as much they were. They probably don't have money to be able to spend that much. Sales dropping all throughout the industry. Reporter: Rodriguez says his suppliers are dropping their prices, too, feeling the same pressure, and he's passing along those savings to his customers. Linsey? Thank you. When we come back, another

This transcript has been automatically generated and may not be 100% accurate.

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