Affordable Grocery Prices: Exploring Retailers and Cities with Lowest Food Costs
In a recent study by NetCredit, a Chicago-based online financial service loan provider, the affordability of grocery stores across the United States was analysed. The report, which covered over 2,000 stores within 136 chains, provides insightful findings about the cost of groceries in various states and cities.
According to the report, Target is the most affordable grocery store in 15 states, more than any other chain, including Walmart or Aldi. In these states, Target's grocery prices tend to be significantly below the state average. However, Walmart holds the title of cheapest grocery store in certain states such as Illinois, where Walmart prices are about 26.17% below the state average.
Key highlights from the report include:
- Target is the cheapest in many states including Florida, Hawaii, and various Midwestern and Southern states.
- Walmart is the cheapest in some states like Illinois, offering large price savings compared to the average.
- Price Rite is noted as the cheapest in Massachusetts, with Target second and other stores like Hannaford and Wegmans following.
- Safeway and Harris Teeter are generally among the least affordable stores with prices above the state average.
The study used grocery price data from Instacart at the most populous zip codes for states and major cities, comparing prices on common branded items. It covered 136 supermarket chains and 145 cities including the top 100 most populous cities nationwide.
In addition to the findings, the report offers practical tips for consumers looking to save money on groceries. These include using store loyalty programs, shopping for store-brand items, buying in-season produce, and shopping during markdown times.
Meanwhile, a new app called Grocery Dealz is being launched in the Dallas-Fort Worth area, allowing users to compare real-time grocery prices across multiple stores. The developers plan to expand the app to other cities in Texas and, later, across the region and country.
In the Washington, D.C. market, Grocery Outlet's prices came in 34.02% lower than the average grocery store, the largest discount of any location in the study. Dollar General is also offering summer savings, with discounts on over 1,000 products available through Labor Day.
In other news, the H-E-B chain in Texas is 11.88% cheaper than the competition in its hometown of San Antonio. Retailers such as Amazon, Walmart, and Target are gearing up for July sales events, offering the best deals of the summer.
The National Retail Federation is suing New York over an algorithmic pricing law that would require businesses to disclose to consumers when a price was set by an algorithm using their personal data. Dollar Tree has completed the sale of a banner that will be led by retail exec Duncan MacNaughton, potentially signaling a new direction for the company.
In summary, Target and Walmart dominate as the most affordable stores by state and city, depending on location, with some regional exceptions like Price Rite in Massachusetts. The report offers a helpful guide to grocery affordability per state and major city as of mid-2025.
- The report by NetCredit also provides insights into the affordability of stores beyond grocery chains, as the app Grocery Dealz is set to launch in Dallas-Fort Worth, allowing users to compare real-time prices across multiple stores, with expansion plans to other cities and eventually across the country.
- The technology sector is not left out as retailers, such as Amazon, Walmart, and Target, are gearing up for July sales events, offering the best deals of the summer, indicating the integration of technology in their marketing strategies.
- In the realm of personal-finance and budgeting, the report provides practical tips for consumers looking to save money on groceries, including using store loyalty programs, shopping for store-brand items, buying in-season produce, and shopping during markdown times.
- The retail landscape is vast and diverse, with the National Retail Federation currently involved in a lawsuit against New York over an algorithmic pricing law that would require businesses to disclose to consumers when a price was set by an algorithm using their personal data, and Dollar Tree announcing a significant change in their company's direction with the sale of a banner to be led by retail exec Duncan MacNaughton.
