Bold truth: groceries don’t have to drain your wallet, and a new study puts Costco at the top for overall value. If you’ve watched prices climb since 2020, you’re not imagining it—the all-food consumer price index rose about 24% by 2024, and many shoppers still feel that impact every time they scan the cart. With budgets under pressure, finding the best deals matters more than ever, and this study identifies Costco as the most affordable major grocery store.
Consumer Reports partnered with the Strategic Research Group, a market-research firm focused on retail and grocery dynamics, to compare the typical cost of an average basket of groceries across major chains in regionally representative cities nationwide. To set a common baseline, the researchers used Walmart prices for comparison due to its broad national presence.
Key findings show Costco at 21.4% cheaper than Walmart. Closely behind is BJ’s Wholesale Club, just 0.4% cheaper than Walmart. Lidl comes in as the next best option at 8.5% cheaper, with Aldi very close behind at 0.2% cheaper than Lidl. Walmart ranks seventh in affordability among the tested chains, with 28 other stores priced higher overall.
How does Costco manage to keep costs low? A primary driver is economies of scale. Buying in bulk reduces per-unit costs, and Costco’s business model emphasizes volume over high markup on individual items. This approach creates meaningful savings for shoppers, especially on everyday staples.
Beyond bulk buying, Costco’s value proposition isn’t limited to large cuts of meat. The chain offers numerous under-$5 items that frequently become everyday staples for families—think rotisserie chicken, affordable bakery items like baguettes, and other budget-friendly options. With a few simple prep steps, such as pairing rotisserie chicken with inexpensive sides, many customers can assemble cost-effective meals for the week.
In contrast, some high-end grocery chains—like Whole Foods and Publix—often justify their higher prices with premium selections, specialty produce, or premium in-store experiences. While these attributes appeal to certain shoppers, the study underscores that price competitiveness is not exclusive to discount chains; Costco demonstrates that substantial savings can come from strategic sourcing and bulk-model efficiency.
Food-for-thought: is the perceived value of “premium” shopping worth the extra cost for your household, or do bulk-packed staples from clubs like Costco offer a smarter long-term strategy? Share your experiences and questions in the comments: do you prioritize convenience, quality, or price when choosing where to shop? (And if you’ve found great budget-friendly strategies at Costco, what’s your go-to tip?)
