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Which Store Has the Cheapest Groceries: Aldi, Walmart or Stop & Shop?

A look at where shoppers can save the most on groceries


spinner image Our price comparison supermarket shoppers from left to right: Manuela, 57, and Mario Anastacio, 56; Robert Evans and Sherri Evans, 74 and 68; and Victor Sukhai, 75
Supermarket shoppers from left to right: Manuela and Mario Anastacio, 57 and 56; Robert and Sherri Evans, 74 and 68; and Victor Sukhai, 75
Sabrina Santiago

Consumers tend to be loyal to their supermarkets, but that could be costly because prices from one retailer to the next can vary by a lot. With grocery bills up nearly 6.7 percent year over year, according to the most recent U.S. Bureau of Labor Statistics consumer price index, any savings can help, even if it means going somewhere new.  

“Prices are a function of a lot of factors,” says Ravi Anupindi, a professor of operations, research and management at the University of Michigan’s Ross School of Business. “Walmart is a big retailer and thus can exercise its market power to extract better prices from suppliers and pass them onto customers. Smaller retailers do not have that much market power.”  

The variety on store shelves, the quality of the food, handling and labor costs, competition and the demographic of the shopper all play into the prices a particular retailer charges. Stores that cater to lower-income shoppers tend to keep prices lower, while supermarkets that have a lot of variety may have higher prices as a result. 

​Either way, consumers have a lot of options when filling their shopping carts with groceries. There are discount stores where you can get big bargains on select items, traditional grocery stores that amp up the savings by offering generics and loyalty programs, and one-stop shops where you can get everything from bread to batteries in one place. Proximity to the store and the type of food you purchase will play a role in how much you save. But all things being equal, in some categories, location is everything when it comes to getting a deal.​ To illustrate how much, we went shopping. Armed with a list of 30 grocery items, we visited Aldi, Walmart and Stop & Shop locations around Long Island, New York, to see where you can save the most on everyday purchases. The totals are based on non-sale prices and do not include coupons, loyalty discounts or taxes. Here are our results. ​

spinner image shopping cart graphic showing price totals for a shopping trip of 30 similar sample items on may 22, 2023. Walmart total was $88.37; ALDI's total was $90.91; and Stop & Shop was $114.49.
Getty Images/ AARP

    

​The Winner: Walmart 

Walmart has been a part of American culture since 1962, when the first store opened in Rogers, Arkansas. Today there are 4,684 stores across the U.S., including 3,572 Walmart Supercenters that sell everything from bedding to bread. Walmart is known for its low prices, and that is true of its groceries. Across most categories, Walmart came in first or second when it comes to price.  

“Walmart is generally in a position to take a lower markup on groceries because they’re trying to get you in so you buy higher-markup items in the rest of the store,” says Clark Howard, a consumer shopping expert and host of The Clark Howard Podcast. “Walmart can afford to do something a traditional grocer can’t do, which is take a lower markup on groceries — because they just want you in the building.”

spinner image Sherri Evans and Robert Evans outside of Walmart after shopping at the Westbury, New York store. Photographed on May 22nd 2023.
Walmart shoppers Robert and Sherri Evans, 74 and 68
Sabrina Santiago

The ability to buy everything under one roof on the cheap appeals to many consumers, including Robert and Sherri Evans. The 74- and 68-year-old retirees say they shop at Walmart for the convenience and to save. “It’s one-stop shopping,” Robert says. “There is a lot of variety here that you don’t find at regular supermarkets, and it’s absolutely cheaper.”  

That’s not to say the Evanses won’t hit a big supermarket if they have a long list or want a specific cut of meat. But by and large, they are drawn to Walmart because of the pricing and selection. The key to saving is to know your prices and be willing to compare, the couple say.

Shopping Tip: Know your prices and be willing to comparison shop. “There is a lot of variety here that you don’t find at regular supermarkets, and it’s absolutely cheaper,” Robert Evans says. 

Second Place: Aldi

Hailing from Germany but now headquartered in the U.S., Aldi is a discount supermarket chain with 2,304 stores located across 39 states. It’s known for offering consumers a no-frills food shopping experience with everyday low prices, a smaller store layout, and products displayed in original shipping boxes to save on restocking the shelves. You won’t find a bakery or deli section in Aldi, but you’ll find most food staples and some nonfood items for a deal. 

“National brands are more expensive. Aldi mostly carries private labels, which are cheaper,” University of Michigan’s Anupindi says. It also focuses on keeping costs down so that it can pass on the savings to its customers.  

Popular with Aldi shoppers is its weekly Aldi Finds. Every Wednesday the retailer puts out new discounted food items, small kitchen appliances, seasonal decor, outdoor furniture, gardening tools, apparel and other items. It's a big draw for Victor Sukhai, who started shopping at Aldi on the recommendation of his brother. Sukhai comes for those Aldi finds and to purchase peanuts and other food items he knows he can get for cheap. The key to really saving at Aldi, as Sukhai sees it: Get there early. “When it comes in, it’s finished the next day,” says the 75-year-old retiree, who stopped by Aldi to score some Bake Shop Sour Creme Donuts. But they were sold out. “You have to come early and buy it whenever it’s on sale.” 

spinner image man shows us a can of nuts leaning on grocery cart in front of a supermarket
Aldi shopper Victor Sukhai, 75-year-old retiree
Sabrina Santiago

Shopping Tip: The early bird gets all the deals. “When it comes in, it’s finished the next day. You have to come early and buy it whenever it’s on sale,”  says Sukhai.

Third Place: Stop & Shop

Stop & Shop is a regional grocery store chain with more than 400 locations throughout  the Northeast. The grocer has been around for more than 100 years, hawking everything from produce to specialty cheeses. Stop & Shop prices were the highest of the three, but that shouldn’t come as too much of a surprise. After all, as a regional chain it offers a huge selection of both name-brand and generic items. “Firms that carry a lot of variety on their shelves will have higher costs of managing that variety,” Anupindi says. ​​You might not be able to get the best price at Stop & Shop and similar stores across the country, but that’s not stopping shoppers from coming through their doors. ​

spinner image Manuela and Mario Anastacio outside of Stop & Shop after shopping at the Carle Place, New York store. Photographed on May 22nd 2023.
Stop & Shop shoppers Manuela, and Mario Anastacio, 57 and 56
Sabrina Santiago

For Manuela and Mario Anastacio, convenience is why. “When we go to other stores, we end up coming here to get some stuff,” says Manuela, 57. “We can pretty much get it here in one place.” To save, she uses the store’s digital coupons and its loyalty program. She racks up reward points that she applies to her bill. To increase the savings, she’ll look through the app, and if she spots something on sale, she’ll stock up. “If we don’t need something, but it’s on sale this week and there’s a coupon, I’ll buy it to save some money,” Manuela notes. She’s also big on making a shopping list. “If you come without a list, you spend more.” 

Shopping Tip: Take advantage of the store’s digital coupons and loyalty app to spot sales. “If we don’t need something, but it’s on sale this week and there’s a coupon, I’ll buy it to save some money,” says Manuela Anastacio.

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