Apr 8, 2026
With food costs way up since pre-pandemic — and potentially much higher prices on the horizon due to restricted fuel and fertilizer supplies amid the war in Iran — American shoppers are hungrier than ever for deals at the grocery store (1).
But it can be difficult and time-consuming to comparison shop, seek out coupons and discounts, and sort out legitimate deals from slick marketing.
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Business Insider's Savannah Born, who lives in Indianapolis according to her LinkedIn, set out to compare prices of 32 common items at two of the nation's leading budget grocery chains, Walmart and Costco.
She calculated unit prices (so, cost per pound or ounce), and the differences were striking. Although Walmart (NASDAQ:WMT) edges out Costco (NASDAQ: COST) for a few items — chicken was $0.42 less per pound, sugar and flour significantly cheaper by weight, and a dozen eggs 15 cents less — Costco offered better value overall, and it wasn't close. Overall, Costco prices for Born's chosen items were nearly 26% cheaper (2).
This matches with the findings of a spring 2026 survey from Consumer Reports, which compared Walmart prices to other major brands. It did not compare unit prices, but instead a representative cart full of specific grocery items, which varied depending on what was available in each store.
By this method, only a handful of retailers beat Walmart for value, including Costco, which, with average prices 21% lower than Walmart, is the cheapest large grocery chain in the nation. BJ's, Lidl, Aldi and WinCo also rang in with average prices below the blue behemoth's (3).
When is bulk buying worth it?
Whether it's Costco or another membership-based retailer, to make the discount worth it, you'll need to shop often enough to make back the annual membership fee. At Costco a standard membership is currently $65, which does include other perks including discounts on gas, tires and prescription eyeglasses.
Also, many Americans are limited by geography, and approximately 19 million live in food deserts, where accessing any grocery store can be an ordeal (4). If you have to drive further to hunt down deals, you might not save much, given what you spend in time and gas (and gas prices are up — way up).
Plus, shopping in bulk requires having space at home to store food, and bulk perishable items aren't practical for smaller family sizes. (It doesn't count as a deal if the lettuce rots in your fridge.)
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Finally, if you're on a fixed income, such as Social Security, foods that are cheaper in terms of unit price may not matter much to you, since you might not have the cash available to pay for items in larger quantities.
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How to save on groceries
Looking for lower prices in-store is far from the only way to reduce your food spending. One resource with a ton of tips is Leanne Brown's free cookbook, Good and Cheap.
Build out your pantry and freezer: Given the astronomical fees, ordering takeout a couple of times a month can easily blow your food budget. You're less likely to open a delivery app in a moment of weakness if you keep easy dinners and pantry staples on hand. Adding a few to each grocery order until you have a decent stock at home will help you stay on track.
Buy fewer beverages: Pre-made drinks are extremely expensive, especially relative to the paltry nutrition they provide. Try choosing water with a splash of juice or squeeze of citrus instead. If you're a fizzy drink fiend, a cheap home carbonation machine might help you save in the long run.
Do some meal planning and prep: This doesn't have to be perfect. Planning ahead to use one ingredient in multiple meals can reduce food waste and impulse purchases. Soups, stews, dried beans and rice take some time to prepare, so when you do, make extra and freeze the rest in individual portion sizes (5).
With food prices up over 25% since late 2020, it's worth it to look for deals wherever you can (6).
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
CNBC (1) ; Business Insider (2) ; Consumer Reports (3)(6) ; U.S. Department of Agriculture Economic Research Service (4) ; Leanne Brown (5)
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Genna Buck is an Associate Editor for Moneywise.com
