Costco Beats Out Walmart As Cheapest Grocery Store In The U.S.
A new pricing analysis from Consumer Reports suggests shoppers may find better deals than expected—sometimes well below Walmart’s prices.
The February study, carried out by the New York–based Strategic Resource Group, compared grocery baskets in six major metro areas across the U.S. Walmart, the nation’s largest and most widespread grocer, served as the pricing benchmark. Researchers ranked major supermarket chains—along with several warehouse clubs and specialty stores—based on how their total basket costs stacked up against Walmart’s.
The baskets included a mix of packaged goods, produce, and meat. However, basket sizes varied depending on what each store carried. Comparisons were most comprehensive among mainstream grocers that stock a broad range of identical national brands. Stores that emphasize private-label products or specialty items had fewer overlapping products with Walmart, resulting in smaller comparison baskets.
For instance, in the Chicago-area portion of the study, baskets at chains such as Food4Less, Jewel-Osco, Mariano’s, Meijer, Target, and Walmart each included 56 items. By contrast, Trader Joe’s basket there included just 23 comparable products.
Price differences were significant. Among warehouse clubs, Costco Wholesale and BJ’s Wholesale Club offered the steepest discounts—both averaging 21% less than Walmart. Alabama shoppers can access both chains, with Costco planning a new Irondale location and BJ’s expanding in Foley.
Discount grocers Aldi and Lidl were also cheaper, coming in a little over 8% below Walmart. Aldi continues to expand in Alabama, including converting former Winn-Dixie stores, while Lidl does not operate in the state.
On the higher end, Target averaged 5.9% more than Walmart, followed by Kroger (14.8%), Publix (20.3%), Piggly Wiggly (22.6%), and Trader Joe’s (24.6%). Whole Foods Market was the priciest, at nearly 40% above Walmart.
Overall, the gap between the least and most expensive mainstream supermarkets reached 33%, widening further when warehouse clubs were included. One notable omission from the rankings was Sam’s Club, which was not included in the survey without explanation.
Consumer Reports acknowledged that stores with limited assortments were harder to compare directly. Whole Foods also pushed back, arguing the analysis did not account for its quality standards, recent price reductions, or member perks.