Costco has officially surpassed Walmart as the cheapest grocery retailer in the United States

Costco has now overtaken Walmart to become the least expensive grocery retailer in the United States, according to a new price study that compared common grocery baskets across dozens of major stores nationwide — with Costco emerging as the most affordable overall.

The analysis, conducted by Consumer Reports and Strategic Resource Group, used Walmart’s prices as the baseline for comparison. Across multiple cities and regions, Costco’s average grocery prices were about 21.4% lower than Walmart’s, making it the new top choice for budget-minded shoppers.

Other retailers—including BJ’s Wholesale Club, Lidl, and Aldi—also topped Walmart in affordability, but Costco led the pack nationwide. The report accounted for essentials like packaged goods, produce, and meat, showing that warehouse club pricing can offer significant savings for many common grocery purchases.

Why the shift?
Costco’s bulk and membership model allows it to sell many items at larger scale and often deeper discounts than traditional grocery stores, including Walmart. That advantage at the national level helped it unseat Walmart from its long-held position as the go-to low-price grocery leader in the U.S.

While Walmart remains a staple for everyday shopping, this latest study suggests that Costco may now be the smarter choice for shoppers looking to maximize savings on common grocery bills — especially if they have a membership.