The Cheapest Major Grocery Store In The US Isn't Aldi Or Walmart, According To Report

It's an inescapable truth that groceries are too expensive for too many people. According to USDA statistics, the all-food consumer price index rose nearly 24% from 2020 to 2024, and anyone who's been to a grocery store since then certainly doesn't feel prices getting any lower. With budgets tighter than ever, it's important to get the most for your money, and a new study confirms it: Costco is the cheapest grocery store.

Consumer Reports commissioned a study from the Strategic Research Group, a market research firm specializing in retail and grocery industries. The study examined grocery chains in a handful of regionally representative cities nationwide and the cost of an average basket of goods at major grocery chains in each. And because of its ubiquity, the researchers used Walmart prices for a baseline comparison.

The results showed that Costco was 21.4% less expensive than Walmart, with the similar BJ's Wholesale Club only 0.4% behind. Lidl was a more distant third, at 8.5% cheaper, and its sibling store Aldi finished just 0.2% behind it. Walmart finished 7th, but that's not a bad overall performance — 28 other stores were more expensive.

The low prices at Costco can be a welcome relief from the sticker shock at some of the most overpriced grocery chains in America, like Whole Foods and Publix. Many of these stores offer something else to justify their high prices, such as farm-fresh produce, popular hot food, or exceptional customer service. But from a financial standpoint, it's hard to beat the economies of scale that Costco offers.

Buying in bulk is, after all, a big part of what makes the chain so affordable. For example, one of the best budget shopping hacks at Costco is to buy larger cuts of meat and break them down yourself. Costco Business Centers are great for bulk meat buys, but any cut of meat at a regular Costco can be sold in bulk for less per pound than already cut pieces.

But it's not just giant slabs of meat that make the trip worthwhile. Costco has tons of must-buy foods under $5, like its famous rotisserie chicken and a solid deal on two baguettes. With a little bit of mustard, it can be a week's worth of chicken sandwiches for under $20. Try finding that deal at Whole Foods.