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The words “Forget Costco” might strike fear into the hearts of many loyal Costco members. The department store giant’s commitment to high-quality — and affordable — products is the bedrock of its business. And for some shoppers, the game of getting the most value out of their Costco membership is as entertaining as the samples and $1.50 hot dog menu.
That’s all well and good. But if you want to reduce your grocery bill, there are cheaper stores. Ones that don’t charge an annual membership fee.
It’s at least worth considering. According to the Bureau of Labor Statistics, the average American household spends around $5,700 on groceries. If you could reduce that bill by, say, 10%, that’s $570 you could put into a savings account or spend on a vacation.
Here are four cheaper grocery stores worth checking out.
1. Aldi
The latest rankings from customer data experts Dunnhumby show Market Basket, WinCo and Aldi as the three best stores in terms of price. Dunnhumby examined data and opinions from over 10,000 store customers to rank grocery stores in various categories.
However, with nearly 2,400 stores in the U.S., Aldi is our top pick because it has a much larger footprint than the other two. Aldi is gaining ground in the U.S. because its no-frills stores are actually pleasant to be in. Of course, you do need a quarter to unlock a shopping cart. But Aldi still offers well-lit stores with plenty of space in the aisles.
Aldi’s CEO says you can save up to 40% by switching to the chain. We put that claim to the test last month with a 20-item online basket—in fact, that’s only how much you can save by currently shopping at Whole Foods. That said, Aldi is still cheaper than Walmart and Kroger, and even small weekly savings can add up.
2. WinCo
If you live in the West or Midwest, you’ve probably come across this employee-owned discount haven. WinCo keeps prices low by buying directly from farmers, drastically reducing costs. For example, you have to bag your own groceries and there’s as little advertising as possible. One catch? If you’re looking for credit card rewards, you’ll have to look elsewhere—WinCo doesn’t accept credit cards.
3. Market basket
Market Basket only has stores in New England. However, the chain is Dunnhumby’s number one when it comes to price, promotions and rewards. The popular local brand is characterized by low prices and a strong customer focus. In fact, a 2022 Consumers’ Checkbook price comparison showed that a typical family could save over $1,000 per year by switching from Target to Market Basket.
4. Walmart
If you live in a smaller household and don’t benefit from bulk purchases at Costco, Walmart may be a better choice in terms of price. Dunnhumby ranked Walmart fifth in price, while Costco didn’t make the top 10.
However, Walmart and Costco are very different companies, which makes a direct price comparison difficult. We did a quick search online for a few staples and found that pasta, basmati rice and tuna are all cheaper at Walmart. However, a lot depends on what products you’re buying. Additionally, Costco shoppers often find better prices in-store.
Reduce your grocery bill
Switching stores can be a great way to reduce your grocery spending. Another effective strategy is to combine the benefits of cashback apps, coupons, and credit card rewards. By combining multiple offers and rewards, you can get even more back on your money. I’m also a huge fan of meal planning. While it can be a hassle, it’s a fantastic way to reduce waste and keep your grocery budget under control.
The list above shows that you often get more for your money at smaller, local brands than at large chains. If you’re a frequent Costco customer, you don’t have to forget about the brand entirely. Still, it’s worth checking out other stores occasionally to make sure you’re still getting the best value for your money. Especially since Costco will always refund your membership fee if you’re not satisfied.
Top Credit Card to Use at Costco (and Everywhere Else!)
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We strongly believe in the Golden Rule, and editorial opinions are solely our own and have not been previously reviewed, approved, or endorsed by the advertisers involved. The Ascent does not cover all offerings in the marketplace. Editorial content on The Ascent is separate from The Motley Fool’s editorial content and is produced by a different team of analysts. Emma Newbery does not own any of the stocks mentioned. The Motley Fool owns positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
