The words “Forget Costco” can strike fear into the hearts of many loyal Costco members. The department store giant’s dedication to high-quality — and affordable — products is the foundation of its business. And for some shoppers, the game of squeezing the most value out of their Costco membership is as much fun as the samples and $1.50 hot dog combo.
That’s all well and good. But if you’re looking for ways to reduce the cost of your grocery bill, there are cheaper stores. Stores that don’t charge an annual fee.
It’s worth considering. According to the Bureau of Labor Statistics, the average American household spends about $5,700 on groceries. If you could reduce that bill by, say, 10%, that would mean $570 to put in a savings account or toward a vacation.
Here are four cheaper supermarkets worth checking out.
1. Aldi
The latest rankings from customer data experts Dunnhumby place Market Basket, WinCo and Aldi as the top three stores for price. Dunnhumby looked at in-store data and opinions from over 10,000 shoppers to rank supermarkets across a range of categories.
With nearly 2,400 U.S. stores, Aldi is our top pick, though, because it has a much larger footprint than the other two. Aldi is gaining popularity in the U.S. because its no-frills stores are actually nice to be in. Sure, you’ll need a quarter to unlock a cart. But Aldi still has well-lit stores with plenty of aisle space.
Aldi’s CEO says you can save up to 40% by switching to the chain. We tested that claim last month with a 20-item basket online. In reality, you can only save that much if you currently shop at Whole Foods. Still, Aldi is cheaper than both Walmart and Kroger, and even small weekly savings add up.
2. WinCo
If you live in the West or Midwest, you’ve probably come across this employee discount haven. WinCo keeps prices low by buying directly from farmers and aggressively cutting costs. For example, you don’t have to bag your own groceries, and the company does minimal advertising. 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 in terms of price, promotions and rewards. The beloved local brand has low prices and a strong focus on the customer. A 2022 price comparison by Consumers’ Checkbook found that the average family could save more than $1,000 per year by switching from Target to Market Basket.
4. Walmart
If you live in a smaller household and don’t take advantage of Costco’s bulk buying, Walmart might be a better choice price-wise. Dunnhumby ranked Walmart fifth for price, while Costco didn’t make the top 10.
That said, Walmart and Costco are very different beasts, making it tricky to make a direct price comparison. We did a quick online check of a few staples and found that pasta, basmati rice, and tuna are all cheaper at Walmart. But it also depends on what products you’re buying. Plus, Costco shoppers often find better prices in-store.
Lower 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 earn your money back in a big way. I’m also a big fan of meal planning. It can be a hassle, but it’s a great way to reduce waste and keep your grocery budget in check.
The list above shows that smaller, local brands often give you more bang for your buck than big chains. If you’re a big Costco shopper, you don’t have to completely forget about the brand. Still, it’s worth checking out other stores every now and then to make sure you’re still getting the best value for your money. Especially since Costco will refund your membership fee at any time if you’re not satisfied.
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We are firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by the advertisers listed. The Ascent does not cover all offerings in the marketplace. The Ascent editorial content is independent of The Motley Fool editorial content and is produced by a different team of analysts. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
Forget Costco: Here Are 4 Cheaper Stores was originally published by The Motley Fool
