new York
CNN
—

Aldi is launching its lowest-priced Thanksgiving meal deal in five years – undercutting one of its biggest rivals – as inflation-weary consumers shift their shopping habits to cheaper store brands.

The budget grocery chain is launching an “anti-inflationary holiday meal” priced at $47 that feeds 10 people, which works out to $4.70 per person. That's about $2 cheaper than a similar deal at Walmart, suggesting Aldi is ready to take on its larger rivals as it expands its store count and market share in the US.

Aldi's meal includes all the traditional Thanksgiving sides, including a Butterball turkey, gravy, rolls, macaroni and cheese, stuffing, and ingredients to make cranberry sauce, mashed potatoes, sweet potato casserole, green bean casserole and pumpkin pie.

“With 25% of U.S. households now shopping at Aldi, we know that grocery prices are still top of mind for customers,” CEO Jason Hart said in a press release.

Food prices have risen sharply in recent years, partly due to the pandemic and later exacerbated by the war in Ukraine, extreme weather and companies seizing the opportunity to raise prices.

However, food price inflation has moderated significantly over the past year, consumer price index data shows. According to the Bureau of Labor Statistics, food prices rose 0.9% annually in August, matching the average increase in 2019.

Earlier this year, Aldi announced plans to open 800 new stores nationwide as part of a $9 billion expansion plan. The German company has a low-cost business model and boasts that its prices are up to 50% cheaper than traditional supermarkets.

At around 12,000 square feet, the stores are much smaller than a typical U.S. supermarket at 40,000 square feet. More than 90% of the brands Aldi sells are own brands.