24/7 Insights
- Many believe that Walmart is the cheapest place to shop.
- Other retailers go out of their way to drop pricing below that of Walmart.
- Some of the best pricing can be found at regional grocers.
- Also: 2 Dividend Legends to Hold Forever
When it comes to value pricing in the retail segment in the United States, there is a consistent belief that Walmart offers the best bang for your buck. While Amazon has certainly made a dent in Walmart with online sales, as far as physical stores go, the belief that Walmart is the least expensive isn’t always true.
In many cases, other retail chains that compete with Walmart look at its pricing as the line in the sand. Said differently, plenty of competitors shop at Walmart and then determine in what categories they can beat Walmart’s pricing to attract customers to their stores.
8. Market Basket More In Your Basket
- Locations: 90
- Known for: Being one of the least expensive groceries in the New England area with a “more for your dollar” slogan
- Best things to buy: New England fish items like clams, fresh seafood, maple syrup, pears, apples
More In Your Basket
According to a recent study, Market Basket’s pricing was 18% lower than other Boston-area groceries. This study found that a family spending $250 per week on groceries could save as much as $2,300 annually by shopping at Market Basket. The privately owned business heavily focuses on keeping prices down, which has helped Market Basket earn a reputation as one of the cheapest groceries in the US.
7. Food 4 Less
- Locations: 101
- Known for: A no-frills grocery store where customers bag their groceries
- Best things to buy: Organic orange juice, cage-free brown eggs, vegetable chips, and organic creamy peanut butter
A Kroger Brand
Located in just four states, the Kroger-owned Food 4 Less brand is quickly becoming a go-to choice for customers looking for inexpensive groceries. These locations sell dry goods, canned goods, baking supplies, and organic and non-organic produce for less. The same can be said for health and beauty items, though Walmart has a larger selection overall.
6. H-E-B
- Locations: 420
- Known for: Being region-specific to just Texas, with 380 stores in Texas and another few dozen in Mexico
- Best things to buy: Whataburger sauces, Texas-branded products, Taste of San Antonio, fajitas, tortillas, and more
Better In Texas
As Texans believe everything is better in Texas, this might be true if you shop at a H-E-B grocery store. Considered one of the best privately owned groceries in the country, H-E-B pricing compares very well to Walmart while offering things you can’t get at any Walmart location. However, where H-E-B truly wins is its low-priced yet outstanding quality meats and produce, which Walmart cannot match.
5. Lidl
- Locations: 173
- Known for: Fantastic selection of low-price items, including store-branded items, which account for 80% of the store’s inventory
- Best things to buy: Seafood and dairy, organic meats, organic fruits and vegetables, dairy products and fair-trade chocolates
Store Branded Everything
Another international brand trying to carve out a niche in the United States, Lidl, is already well on its way to success. With 173 stores and growing, where Lidl beats out Walmart is the idea that over 80% of the items in Lidl stores are store-branded items. This means they are cheaper than brand-name items and even cheaper than Walmart’s private-label brands. Ultimately, Lidl is cheaper and healthier with grass-fed meats, organic fruits and vegetables, and organic dairy products.
4. WinCo Foods
- Locations: 141
- Known for: Midwest-based employee-owned grocery store with more than 20,000 employees
- Best things to buy: Boxed foods, dairy products, and bulk chases are said to save customers a lot of money
The Midwest Surprise
With only 141 employee-owned locations in the Midwest, many Americans can’t walk into a WinCo Foods store. However, for those who can, the bulk purchase area in its stores can be vastly cheaper than Walmart. Everything from Arizona Iced Tea, soft drinks, eggs, spices, smoked and grilled items, and barbecue charcoal is cheaper than Walmart. This is a testament to the employee-owned nature of WinCo Foods, as they are focused on inexpensive pricing and not driving big profits.
3. Costco
- Locations: 890
- Known for: Bulk purchases, exclusive items under the Kirkland brand, regional inventory
- Best things to buy: Frozen foods, lunch items, fresh food, baking and cooking essentials
Buying In Bulk
Costco’s pricing can be better than Walmart’s in multiple categories if you like to stock up on items simultaneously. It’s widely considered cheaper to purchase fresh food and frozen foods, and even some staples like milk and eggs can be less expensive at Costco. However, when you buy in bulk, Costco shines. Even though you will pay more upfront, you’ll restock less, which makes things like paper towels and toilet paper less expensive than Walmart.
2. Aldi
- Locations: 2,443
- Known for: No-frills shopping experience with numerous private-label products
- Best things to buy: German foods, baking ingredients, basic food staples, pre-cooked frozen foods
The German Giant
Aldi is expected to have close to 3,200 locations by 2028, making it a formidable competitor to Walmart’s grocery business. Compared to Walmart, there is an expectation you should be able to walk out of Aldi for at least a few dollars less than you would spend at Walmart if you took a list of the same items. Fans of the brand love it for basic food staples like milk and eggs, as well as foreign food items you can’t get at Walmart.
1. Target
- Locations: 1,963
- Known for: High-quality, low-priced items across food, clothing, beauty, and more
- Best things to buy: Up & Up cleaning products, dealworthy essentials
Walmart’s Biggest Competitor
When you think of Walmart and competition, it goes without saying that Target is at the very top of the competition. While Walmart is generally considered the less expensive of the two, there are hundreds, if not thousands, of items where Target beats Walmart, including bottled water and house-branded cleaning supplies. In many cases, Target’s Cat & Jack brand also offers better pricing for kids’ clothing.
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