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What is the best grocery store to shop at to save money?

Aldi tops the charts with its rock-bottom prices. Around 90% of the items on its shelves are its own brands, and it keeps costs down by selling a smaller selection of products than other stores.

fool.com - 6 Best Grocery Stores to Save You Money - The Motley Fool

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Keep an eye out for these discount grocery stores in your area.

Key points

A report says Aldi, Market Basket, and WinCo have the lowest prices.

Food prices are rising faster than they have in over 40 years.

There's often a trade off between convenience and lower prices.

If it feels like groceries get more expensive every time you go to the store, that's because they do. Food prices are rising faster than they have in over 40 years and the cost of groceries in July came to 13% more than it would have a year ago. There's all kinds of ways we can reduce the impact of rising prices, including making a commitment to cut food waste, buying in bulk, and meal planning. It's also worth seeing if cash back apps can earn you rewards on your food spending. When it comes to saving on food costs, where you shop is often as important as what you buy. Global consulting firm Dunnhumby has analyzed which U.S. grocery stores offer consumers the lowest prices. Here are the top six lowest-cost stores:

1. Aldi

Aldi tops the charts with its rock-bottom prices. Around 90% of the items on its shelves are its own brands, and it keeps costs down by selling a smaller selection of products than other stores. In Germany, where Aldi originated, people often buy basics such as toilet paper or cleaning supplies in Aldi, and stop at another store for branded products and other items. Aldi doesn't yet operate in the whole U.S. It has over 2,100 stores in 37 states, and has big plans to expand further in the coming years.

2. Market Basket

Mainly based in Massachusetts and New Hampshire, Market Basket also has stores in Rhode Island and Maine. With 90 stores in total, the chain has a reputation for quality produce at low prices. Its "More for your Dollar" slogan really can help you stretch your food budget. If you live in New England and want to reduce costs, give Market Basket a try.

3. WinCo

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Employee owned WinCo operates in 10 states and has over 130 stores. The bulk of its shops are in California. WinCo doesn't accept credit cards, employ baggers, or spend lots of money on advertising. All of that translates into lower costs and hopefully a little more money in your bank account at the end of the month.

4. Grocery Outlet

Unlike other stores that reduce stores by focusing on their own brand products and avoiding brands, Grocery Outlet sells brand items at significant discounts. It buys up excess inventory from big name brands and passes the savings on to its customers. Products often cost 40% to 70% less than in other stores. It has over 400 stores in eight different states.

5. Save A Lot

Save A Lot has over 900 stores in more 32 different states and is one of the biggest U.S. rivals to Aldi. The chain keeps prices low by focusing on its own brand products, and keeping the size of its stores relatively small. The chain is working on giving its stores a facelift.

6. Lidl

Like Aldi, Lidl started out in Germany almost 50 years ago. It now has almost 200 stores in nine different states, mostly on the mid-Atlantic East coast. Dubbed by some as Trader Joe's meets Walmart, Lidl offers high quality items at low prices. You can also buy items for the home, garden, and back-to-school products. Download the app for even more bargains.

Reducing your grocery costs

One challenge with the hunt for low-cost grocery stores is that most of the lower cost chains don't operate throughout the U.S. Look for low-cost stores near you, and look for ways to incorporate discount shopping into your routine. The biggest trade off when you're cutting food costs is convenience. You may have to go to more than one store or adapt your shopping when certain items aren't available. If you plan to pay using a grocery rewards credit card to earn cash back, be aware that some of the stores and chains won't accept them.

fool.com - 6 Best Grocery Stores to Save You Money - The Motley Fool

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