Wednesday, September 9, 2009

Target beats Walmart at cheap grocery prices

Everyone knows that Aldi's has rock bottom grocery prices, but Target beating Walmart at grocery prices?

Walletpop's grocery pricing survey suggests that Target beats Walmart by a small margin: Comparing grocery prices, Aldi wins overall, but Target beats Walmart. Not surprisingly, traditional full service supermarkets like Safeway, Kroger, Albertsons didn't fare as well as Walmart and Target in Walletpop's study, which also finds that Aldi has the lowest prices, but as anyone who has shopped there would know, selection is limited.

My own admittedly unscientific study, borne from my own weekly grocery routine, suggests that Target and Walmart are extemely close in pricing, especially if they are near to each other. Both Target and Walmart give the managers of their local stores some flexibility in pricing to compete with neighboring stores. Where I live, there is a Walmart, Target and Aldi within a one-mile radius and you can see my local Target and Walmart competing on the pricing of groceries and household items. In fact, prices on many household and grocery items are lower at my local Target than at Target in other neighborhoods.

My personal preference is to do my grocery shopping at my local Trader Joe's, which is about 5 miles away. Both Trader Joe's and Aldi's are owned by the same German parent company and they reflect that German ethos of frugal pricing. I shop for household necessities at Target, which gives me the opportunity to browse their close-outs and clearances too.

Link: Comparing grocery prices, Aldi wins overall, but Target beats Walmart
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