Grocery prices have soared over the past few years, which has made it harder for many Americans to put food on the table. If you’re trying to stretch your grocery budget, switching to a more affordable supermarket can help you get more for your money. Certain grocery chains such as Aldi and Grocery Outlet have a reputation for providing low prices across the board. To help you reduce your food costs, here are the top five cheapest grocery stores in the US.
Shop at the 5 Cheapest Grocery Stores to Save Money on Food
Aldi
Aldi is a discount grocery chain that was founded in Germany over 40 years ago. The first US location opened in 1976 in Iowa. Since then, the company has expanded to over 2,300 locations in 39 states.
If you shop at a traditional supermarket, you can reportedly save up to 50% on groceries just by switching to Aldi. The discount grocer can offer such low prices because it cuts costs in various ways. Aldi stores usually have a smaller footprint, shorter operating hours, and fewer employees than regular supermarkets to reduce overhead.
Customers have to bag their groceries, supply or purchase their shopping bags, and return carts themselves. Aldi also sells mostly store-brand products to keep prices low. Although you may not be able to get your favorite name-brand items at Aldi, you can get big discounts. One investigate found that Aldi’s prices were about 15% cheaper than Walmart’s.
Just be careful to stick to your shopping list and avoid the Aldi Finds aisle if you want to save money. Aldi has a rotating selection of Aldi Finds, which are usually specialty food products and unique household items. Although Aldi is one of the cheapest grocery stores, putting too many Aldi Finds in your cart can provoke you to go over budget!
Costco
Costco is a warehouse club that’s known for selling items in bulk. The company opened its first location in San Diego in 1976. Today there are nearly 600 Costco locations throughout the US. To shop there, you have to become a Costco member and pay a reasonable annual fee. Keep in mind that you’ll probably recoup the cost of your membership and then some since Costco is one of the cheapest grocery stores.
Because membership fees make up a big chunk of Costco’s revenue, the company can keep its prices low while still turning a profit. The warehouse club also saves money by purchasing inventory in bulk and limiting its advertising costs.
Thanks to these cost-cutting measures, Costco doesn’t have to mark up its inventory as much. Costco’s products have an average markup of just 11% compared to 24% at Walmart. You can score even bigger savings by choosing Kirkland Signature products, which is Costco’s store brand. Kirkland groceries are often 20% cheaper than name brands while offering similar quality and flavor.
Grocery Outlet
The first Grocery Outlet was opened in 1946 by Jim Read and sold discounted military items. Today the company has over 400 locations across eight states and sells discounted groceries to 1.5 million shoppers per week.
Grocery Outlet is one of the cheapest grocery stores and sells name-brand groceries at a 40% to 70% discount. The company can supply such good deals because it buys surplus inventory and product overruns.
However, this means that you may not be able to find the same items every week, which can be frustrating. Some products can also be close to the expiration date, so you may need to use or freeze them soon. But overall, shoppers are still satisfied with their go through. In a recent survey, 78% of respondents said Grocery Outlet offers good value for money.
Walmart
If you live in a rural area with limited grocery store options, you can still save money by shopping at Walmart, which is known for its everyday low prices. The retailer has over 10,000 locations and a huge amount of buying power, so it can negotiate good deals with vendors and pass on savings to consumers.
Walmart also has a clearance rack in almost every part of the store, including the bakery and freezer aisles. Clearance prices can be up to 95% off of the retail price. So be sure to check the clearance section for extra savings!
Trader Joe’s
Trader Joe’s has over 500 locations throughout the country and is known for its unique selection of products (including cult favorites appreciate our beloved Everything But the Bagel Seasoning). So if you’re a foodie hoping to save money, Trader Joe’s is a great place to shop. A recent analysis by CNET found that shopping at Trader Joe’s is about 33% cheaper than heading to a conventional supermarket.
Trader Joe’s mainly sells store-brand products, which is how the company can offer such delicious food at affordable prices. Just be careful not to load up your cart with too many extras. Although all the tasty snacks are tempting, limit yourself to just one or two so you can stick to your grocery budget!
Where does your family appreciate to shop? Do you visit one store or multiple to stretch your grocery budget? Let us know in the comments!
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