Grocery shopping can take a significant chunk out of your budget. However, some U.S. grocery stores have come up with creative strategies to ease the financial strain. From limited selections and private-label brands to bulk buying and warehouse layouts, these stores help customers save money without sacrificing quality. After surveying over 6,500 U.S. consumers on which grocery retailers offer the best value, MarketForce compiled a list of the top nine cheapest grocery stores in the U.S.
Aldi
Aldi is known for using a variety of cost-saving methods to offer lower prices. Most of its shelves are stocked with private-label brands, bypassing the premium prices of national brands. This allows Aldi to control both quality and pricing while passing savings directly to customers. Smaller store formats, fewer employees, and a no-frills shopping environment keep overhead low. Plus, their quarter deposit system for shopping carts and the self-bagging process help reduce labor costs, further lowering prices.
Woodman’s Market
Unlike Aldi, Woodman’s Market utilizes its large store format and customer base to negotiate bulk discounts with suppliers. By purchasing in large quantities, they secure better per-unit prices, which helps keep prices competitive. With its warehouse-style layout, wide aisles, and minimal displays, the store can offer more products at lower costs. Additionally, Woodman’s app allows customers to access digital coupons and create shopping lists, enhancing the shopping experience and minimizing impulse buys.
WinCo Foods
WinCo Foods focuses on cost-saving strategies to provide competitive prices. They skip expensive advertising campaigns, relying instead on word-of-mouth marketing and occasional mailers. By buying in bulk, WinCo secures lower per-unit costs from suppliers, helping them keep prices down. WinCo also uses a low-cost membership model that generates extra revenue while still providing affordable prices for groceries.
Grocery Outlet
Grocery Outlet specializes in surplus inventory, acquiring overstocked items, packaging changes, or near-expiration products from manufacturers. This allows them to offer products at significantly discounted rates. Since their inventory is constantly changing, customers enjoy the “treasure hunt” experience, often finding unique or brand-name items at unbeatable prices. Although less predictable than traditional stores, Grocery Outlet’s ever-changing selection makes it an exciting place for frequent bargain hunters.
Costco
Costco’s model revolves around bulk buying and a membership system. By purchasing in large quantities, Costco secures discounted prices from suppliers, passing these savings on to members. Their selection includes both national brands and high-quality Kirkland Signature private-label products. With a no-frills warehouse layout and optimized inventory turnover, Costco keeps operating costs down, making it a go-to for customers willing to pay a membership fee for major savings.
Sam’s Club
Similar to Costco, Sam’s Club relies on a membership model and bulk purchasing to offer discounted prices on groceries, household items, and more. With a mix of national brands and their own private-label items, Sam’s Club uses high-volume purchases to negotiate lower prices with suppliers. Like Costco, their warehouse-style layout minimizes operating costs, helping members save on bulk purchases while enjoying a variety of products.
BJ’s Wholesale Club
BJ’s Wholesale Club competes with Costco and Sam’s Club by offering bulk discounts on various products, with a mix of national brands and their own Berkley Jensen private-label items. Bulk purchase agreements help BJ’s negotiate lower per-unit costs, but unlike Costco and Sam’s Club, they tend to offer slightly smaller quantities of some items, catering to a wider range of customer needs. BJ’s membership model ensures that shoppers can access significant savings.
Trader Joe’s
Trader Joe’s stands out for its unique approach to cost-cutting. Instead of a warehouse format, it focuses on a curated selection of high-quality private-label products, eliminating the markups associated with national brands. By negotiating directly with producers and keeping store operations simple with minimal staff, Trader Joe’s offers customers competitive prices. With no traditional marketing campaigns, the store attracts customers through word-of-mouth and its quirky, enjoyable shopping atmosphere.
Fred Meyer
Fred Meyer uses a multi-faceted approach to offer savings to shoppers. With digital tools like online ordering and digital coupons, they streamline the shopping experience and help reduce impulse buys. Additionally, Fred Meyer’s Fuel Points program rewards customers with gas discounts based on grocery purchases, incentivizing repeat business. While it doesn’t rely exclusively on extreme cost-cutting methods, Fred Meyer prioritizes convenience, value, and strategic promotions to ensure customers get a great deal.
