Grocery shopping has gotten so expensive that many people automatically head to Walmart, expecting to find the lowest prices. But a price comparison in Southern California found that Walmart wasn’t always the cheapest option, and the difference was pretty noticeable at some stores.
The comparison, commissioned by Consumer Reports, found Costco had the lowest prices among the stores included in the study. WinCo Foods and Aldi also came in below Walmart, while several other familiar grocery chains were considerably more expensive.
That doesn’t mean Costco will be the cheapest place to shop in every city or for every item. Prices can vary by location, store, brand, sales, and membership discounts. Still, the comparison shows why it can be worth checking a few stores before assuming Walmart has the lowest price.
Costco Came Out on Top in the Southern California Comparison
Researchers compared grocery prices at major supermarket chains in Southern California, using Walmart as the reference point.
The three stores with the lowest prices in the comparison were Costco, WinCo Foods, and Aldi. Their prices came in below Walmart by the following amounts:
- Costco — about 20% cheaper than Walmart
- WinCo Foods — about 4.3% cheaper
- Aldi — about 4% cheaper
Costco had the largest price difference of the three. Its warehouse format and bulk packaging can make certain grocery items less expensive per unit, though shoppers also have to factor in the membership fee and whether they can realistically use larger quantities before they spoil.
Warehouse retailer Costco can be particularly useful for households that regularly buy larger quantities of pantry staples, meat, household products, or other items that store well. For someone shopping for a smaller household, buying in bulk isn’t automatically a better deal if part of the purchase ends up going to waste.
Some Familiar Grocery Stores Were More Expensive
The comparison also found a wide gap between Walmart and several other grocery chains in Southern California. The following stores had higher prices than Walmart in the study:
- Target — about 8.2% higher
- Food 4 Less — about 10.3% higher
- Stater Bros. Markets — about 15.6% higher
- Trader Joe’s — about 18% higher
- Ralphs — about 21.9% higher
- Albertsons — roughly 26% higher
- Vons — roughly 26% higher
- Whole Foods Market — about 35% higher
Whole Foods had the highest prices among the stores included in this particular comparison. That doesn’t mean every product at Whole Foods costs more than the same product elsewhere, but the overall basket used in the study came out substantially higher.
Related: 12 Best Places to Grocery Shop on a Budget
How the Price Comparison Was Done
The comparison was conducted by Strategic Resource Group on behalf of Consumer Reports. Researchers visited stores in person and recorded shelf prices during a 48-hour period in each metro area.
The baskets included a mix of packaged foods, fresh produce, and meat. Sale prices and loyalty-card discounts were included, while manufacturer coupons and deals available only through a store’s app were excluded.
Researchers were also able to compare many of the same national-brand products across mainstream grocery chains. That made it easier to see how much the same item could cost at different stores.
There was a limitation, though. Specialty retailers and stores that rely heavily on their own private-label products had fewer products that could be matched directly with Walmart. That meant some comparisons involved smaller baskets.
What a Price Difference Could Mean for Your Budget
A few percentage points might not seem like much on a single grocery trip, but the difference can become more noticeable if you’re shopping every week.
For example, using the study’s percentages, a $200 basket at Walmart would cost roughly $160 at Costco if the same 20% difference applied. A basket that costs $200 at Walmart would cost around $270 at Whole Foods, based on the study’s roughly 35% difference.
Those numbers are examples based on the reported percentage gaps, not a guarantee of what the same basket would cost today. Prices change all the time, and the actual difference depends on what you’re buying.
Still, if a household spends hundreds of dollars on groceries each month, even a modest reduction in the cost of each shopping trip can add up over time. For Southern California shoppers facing high living costs, comparing prices at nearby stores may be worth the extra few minutes.
Why Some Stores May Cost More
Price isn’t the only reason people choose one grocery store over another. Some shoppers are willing to pay more for particular brands, specialty products, ingredient standards, prepared foods, or other features they value.
After the Consumer Reports comparison, Whole Foods pointed to some of those differences and said that price comparisons don’t always account for its sourcing and ingredient standards. The company also said it had lowered prices on about 25% of its items over the past 18 months, with a focus on private-label products, and that Amazon Prime members could receive additional in-store discounts.
That doesn’t erase the price differences found in the study, but it does provide some context. A cheaper grocery basket isn’t automatically the right choice for every shopper, just as a more expensive store isn’t necessarily a poor choice for someone who prefers its products.
It Pays to Compare Grocery Prices
The biggest takeaway from the comparison is that the store you choose can have a real effect on your grocery bill. Walmart may be a good fit for many shoppers, but this Southern California study found that Costco, WinCo Foods, and Aldi had lower overall prices in the baskets researchers compared.
Your results may vary depending on where you live and what you buy. Checking prices at a few nearby stores, paying attention to unit prices, and being selective about bulk purchases can help you figure out which options actually save you money.y.
