Which Chain Has the Cheapest Groceries?

Shopping for groceries on a budget is harder than ever. Since the pandemic, grocery prices are up 25 percent. If you’re struggling to afford food, you’re not alone. More than 9 million older adults are in the same boat.

National chains like Aldi, Target, and Walmart each say they have low prices, but which store really offers the best buys? To get a true apples-to-apples comparison, you need to calculate unit prices — the cost per pound, quart, or other unit of weight or volume of a food package.

AARP did just that when shopping on New York’s Long Island. With 30 items on their list, they discovered which store had the cheapest groceries. Here are the results.

The Winner: Aldi

Aldi, which has 2,381 locations in 39 states and territories, including California, Florida, Michigan, New York, Pennsylvania, Texas, and Washington, D.C., was the clear winner. From bananas to salmon, the basket at Aldi cost $66.11, compared with $67.63 at Walmart, and $83.62 at Target. 

Agnes Sollecito, a 62-year-old retiree from Floral Park, New York, does her food shopping mainly at Aldi, attracted by the low prices. She plans her meals by the bargains she finds at the store. “It’s definitely cheaper,” says Sollecito, pointing to two pineapples in her shopping cart. “These are $1.79.” 

Second Place: Walmart 

Walmart, with more than 10,500 stores in every state and 19 countries, was only $1.52 more expensive than Aldi. Walmart’s generic brand held its own but was slightly more expensive in some categories, which pushed its basket bill over Aldi’s. In AARP’s price comparison last May, Walmart came out on top. At $88.37, its basket was $2.54 cheaper than Aldi’s.

Paul Madiefsky, a 68-year-old retiree from Long Island, is still fond of the retailer. “Prices are reasonable. I don’t find them expensive, and they have good stuff,” says Madiefsky.

To save money Madiefsky uses coupons, finding them online and in newspapers.

Third Place: Target 

Target, with 1,956 stores in every state, had the priciest basket by a wide margin. In many categories, Target’s prices were only slightly higher, but higher-priced salmon and no store-brand milk or cornflakes proved costly. Target’s basket was $17.51 more than Aldi’s with those three items, but just $5.86 more without them. It was $15.99 more than Walmart’s with them, and only $2.21 more without them.

That may not matter for shoppers like Annette Kruzynski, a 78-year-old retiree from West Hempstead, New York, who sees grocery shopping at Target as an extra convenience. It was only recently, when she was shopping for cat litter, that she realized Target sold groceries. “Anytime we go to Target, we pick up a few things,” says Kruzynski. 

“We go where the sales are. Whoever has the lowest price gets our business,” says Kruzynski.

Honorable Mention: SNAP

One thing all three chains have in common? They all accept SNAP (Supplemental Nutrition Assistance Program) benefits, which could help you save at checkout. 

About 8.7 million households with adults 50 and older get this free grocery money, but many more people are eligible. If you didn’t qualify before, now may be the time to apply again, especially if you are over age 60 or living with a disability. 

What’s in the shopping cart?

Find out which one saves you the most.

Note: prices based on shopping comparison of thirty similar sample items on May 23, 2024. Prices may vary.