US grocery chain HE Butt has announced plans to cut prices on thousands of popular items.

The rollback will begin in 43 of its more than 300 stores in Texas and Mexico.

It will be promoted through print and broadcast advertising, billboards, and a company mascot.

The chain has promised big savings on items from meat and seafood to milk and bread, and new coupons and promotions on private label goods and meal deals.

"The shifting economy is driving behavioural changes in customers, forcing many of them to focus on necessities, rather than luxuries," the company said.

HE Butt said it would be able to keep prices down through efficient purchasing, self-manufacturing, local warehousing and relationships with local growers.