Walmart is steering $2.9 billion in tariff refunds toward lower grocery and merchandise prices, the company said during its second-quarter earnings call in August, as shoppers across Southwest Ohio cope with rising fuel costs and food bills.

The pledge lands close to home. Walmart disclosed in April that it would remodel 18 stores across Ohio in 2026, including a location in Mason, as part of more than $650 million spent on Ohio stores over the past five years, the Cincinnati Enquirer reported.

Chief Financial Officer John David Rainey said the company had received "substantially all" of the refunds it was eligible for after the Supreme Court in February struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), CBS News reported. Rainey said the money would go toward investments in grocery and general merchandise.

"We're investing heavily in price because customers need us to and because we believe it drives market share gains over time," Rainey said during the call.

Gas prices squeeze local budgets

Warren County drivers were paying an average of $3.89 a gallon and Butler County drivers $3.83 a gallon the week of Oct. 19, according to AAA data cited by the Dayton Daily News. Both counties were below the statewide average of $4.04.

Ohio suspended its 38.5-cent-per-gallon gas tax Oct. 4, with the suspension running through Jan. 2, 2027. State Rep. Andrea White, R-Kettering, said in a press release that the move would bring immediate relief, the Journal-News reported.

Nationally, gasoline costs were up 28.4% year over year as of April 2026, according to Bureau of Labor Statistics (BLS) data cited by the San Francisco Chronicle. The same BLS report showed a 2.9% year-over-year increase in the "food at home" category, with overall inflation at 3.8%.

Tariffs have hit specific items hard. A 17% duty on fresh tomatoes from Mexico pushed tomato prices up 50% year over year, the Chronicle reported. Ground beef rose 18.9%. Coffee climbed 29%.

Walmart's data pledge

Walmart President and CEO John Furner addressed whether the company would use customer data to raise prices in a letter posted on the company's website in September.

Furner laid out three commitments: Walmart will not set prices based on a shopper's identity or the time of day, will not use its AI shopping tool Sparky to raise individual prices, and will let customers decide whether to share personal details.

"Prices can change. We lower them when we can pass savings along. Sometimes they rise because an item costs more to buy or transport," the letter stated. "But using someone's income, shopping history or moment of need to charge them more would violate the EDLP promise our business model is built on. We won't do it."

The Federal Trade Commission on Oct. 28 ordered nine companies, including Walmart and Target, to turn over information on how they use consumer data to set prices, UPI reported. FTC Chairman Andrew Ferguson said the agency would "scrutinize the opaque methodology" some companies may use.

Walmart separately stated on its corporate site in October that it "does not and will not use digital shelf labels for individual or dynamic pricing."

Kroger shifts strategy on home turf

The pricing battle matters in Mason and Deerfield Township, where Kroger and Walmart stores sit minutes apart. Cincinnati-based Kroger said it would invest $129 million in the suburban Cincinnati area in 2026, including converting three stores to the larger Marketplace format and remodeling up to 15 others, according to the Enquirer.

Kroger CEO Greg Foran, who took the job in February after previously running Walmart's U.S. operations, told Grocery Dive in June that the grocer's promotions "have gotten too complicated" and that the company would focus on "simpler, more consistent everyday value."

At an Oct. 20 investor meeting, Kroger announced plans to reduce prices by $5 billion by 2029 and open 110 new stores, the Dayton Daily News reported.

Kroger's annual profit fell 62% in 2025 to $1.01 billion, according to a Wall Street Journal report by Sarah Nassauer and Patrick Thomas. Citi retail analyst Paul Lejuez estimated in a research note that Walmart prices are still 5% to 20% lower on average.