- Consumer Reports worked with market research firm Strategic Resource Group to find the least and most expensive grocery chains in America.
- Researchers collected in-store prices across the country and compared them with Walmart’s prices, the nation’s largest grocery retailer.
- The most affordable grocery store is Costco, thanks to its wholesale club system.
No matter what you buy on your weekly grocery haul, you’ve probably seen how high food prices are right now. In large cities and small towns alike, a stripped-down shopping list can still set you back nearly $100. Even buying basic items like juice and rotisserie chicken can feel like “splurging.”
But we still have to eat. To avoid wildly expensive grocery bills, Americans are adjusting their strategies to save as much money as possible—and it all starts with where they shop. Consumer Reports teamed up with market research firm Strategic Resource Group to examine price differences across mainstream grocery chains.
Researchers conducted the study by collecting in-store price data from grocery stores across the country. Then, the chains were ranked from least to most expensive relative to Walmart, the nation’s largest grocery retailer. And the results aren’t exactly surprising.
Only six chains nationwide had lower prices than Walmart, and the cheapest grocery store in America was none other than Costco. According to the study, groceries at Costco cost, on average, 21.4% less than at Walmart.
Sure, you need to pay a $65 annual membership fee just to get in the door. But you’ll start to see the savings as soon as you step into the warehouse. Costco sources products directly from manufacturers rather than relying on third-party distributors, which allows the chain to negotiate better deals with suppliers. The store also sells far fewer items than your standard supermarket—around 4,000 compared to the usual 30,000—and it buys and sells in bulk to keep costs down.
And, of course, you can’t ignore the ubiquity of Kirkland Signature, Costco’s private label. From pantry staples to frozen foods, Kirkland Signature products cost, on average, much less than name-brand alternatives. While generic products are stereotypically as low-quality substitutes, Costco’s private label has a cult following. (Fans even form lines down the block to score Kirkland Signature merch!)
Groceries cost significantly less at Costco, but there’s a catch: you usually need to buy in bulk to see those savings. Many small households may balk at the idea of buying a year’s supply of rice or flour on a single trip. That upfront investment, however, can translate to extremely low prices per serving and less spending over time.
The wholesale model is clearly one of the most budget-friendly ways to shop for groceries. The second-most-affordable chain in the Consumer Reports study, BJ’s Wholesale Club, uses the same basic approach. Aldi and Lidl also come in cheaper than average, thanks in part to cost-saving measures similar to Costco’s, like prioritizing private-label products and displaying items in their original shipping cases.
Shopping at Costco offers much more than free samples and a food court—it also comes with serious savings.