Warehouse club grocery savings or not?

[sengsational]

I got a promotion from a warehouse club that said they did a real comparison, having shoppers buy the same basket of groceries at 4 grocery stores and the result was a 25% savings compared to the warehouse club. If you want details, you can google "25percentterms".

I'm trying to talk myself out of the pain associated with switching. At the moment, I've shot this down because, for us, it probably wouldn't be a 25% savings for the following reasons:

• They only compare to traditional grocery stores, and we use a "supercenter" (yeah, that one)
• They only consider national brands, but a good bit of the time we use the store brand
• They use pricing from 4 large grocery store chains in our area (specifics undisclosed) in their comparison. I suspect their mix is weighted toward those high-dollar stores we rarely use.
• They take advantage of large package size savings, so the grocery store equivalent for the warehouse package might be two or more standard size packages.
• If we DO use a standard grocery store on occasion (instead of the supercenter), the Amex card gives us 6% back. That rebate rate doesn't work in supercenters or warehouse stores.
• We do have a Sam's Club membership, but only go there for paper towels and stuff...not weekly grocery shopping.

I wouldn't even have thought through this if the promotion didn't say "25%". That's a lot. But I've concluded that I'd not get nearly that much savings.


Anyone out there that thinks they're "killing it" by going to the warehouse club for groceries?

 

[daylatedollarshort]

We go about once a month and stock up on some things like organic meat and coffee. Our local Costco is cheaper than the retail stores on most items but more expensive on most grocery items than stockpiling loss leaders and shopping at ethnic / outlet / 99 cent stores. We do use Costco for non-grocery purchases like gas, eye glasses, tires and prescriptions.

 

[RetiredGypsy]

I found at our warehouse club BJs, it was worth the membership for a few reasons.

-We had 5% back on the store card. Plus sometimes there was 5% back on either Discover or Chase Freedom.
-We had 5-10 cents off every gallon of gas
-They had a great selection of healthier food items and a greater variety of items in some areas that the supercenter didn't.
-Everything was under one roof, so I didn't need to make two trips between the grocery store and Wal-Mart and the office store and department store.
-They actually had some really nice items as far as clothing, household goods, outdoor stuff, etc.
-The things we bought in bulk were of better quality and much cheaper than the grocery store (coffee, meat, almond milk, beans, frozen fruit and veggies, etc).
-There were monthly coupons that arrived in a book every month, and then in-store and manufacturing coupons in addition. I once had $90 in coupons.

I found it worthwhile, with quality overall better than Wal-Mart, and prices much cheaper for the same items than the grocery store. The gas savings was a nice bonus too.

There isn't a warehouse club near here (except Sam's Club, and I'm not at all impressed by what they offer), so I'm back to shopping between two and three grocery stores for everything we want. I miss BJs.

 

[braumeister]

I got a promotion from a warehouse club that said they did a real comparison, having shoppers buy the same basket of groceries at 4 grocery stores and the result was a 25% savings compared to the warehouse club.

That's nothing but strategic backtesting, just like every getrichquick investment scheme does. It says nothing about the items you or I would buy.

 

[Aerides]

There's a big thread on Costco from a while back and a lot of folks do like their grocery. But to me those "side by side" lists are pretty meaningless. They don't represent the actual items I buy, as most of my grocery items are fresh produce and meats, fish, etc.

And shopping by price only for steak is stupid. I know which store carries the best quality and freshest stuff, so that's where I shop mostly.

 

[audreyh1]

I really care about the quality of what I buy. I'm not as price sensitive, but I will quickly notice who has the better deal on a quality item if more than one place carries it.

 

[ExitLeft]

We have a Sam's that's very close and a Costco that's a bit further away. I have a specific list of things I get regularly. I prefer Costco, because they have more organic options in fruits and vegetables. I will go out of the way to get their organic frozen fruits, but otherwise get most things at Sam's. DW goes to Safeway for whatever the clubs don't carry.
The clubs offer other perks, like auto purchasing, cash back on annual spending, gas, credit card offers, etc.
Many years ago, I worked at Price Club, the precursor to Costco. I learned that, at least back then, they made money on the "float," (ie, they invest the revenues from product that was sold before it needed to be paid for under "net 30" terms with suppliers) so it behooves them to turn product as fast as possible, and therefore they keep prices/ margins very low.

 

[bclover]

We do, do very well at BJ's but you definitely have to weigh the pros and cons.

1) I always get my membership through an american express promotion so it's only 35 bucks I think a year.

2) I definitely save over walmart in certain areas. I'm the opposite of you op, while I do use store brands for some things, there are certain things I admit to being name brand loyal. Toilet paper, laundry detergent, tooth paste, mouthwash, pasta sauce and ketchup are a few things that I simply think the name brand is better. I see a huge difference when I use my tide and when I use store stuff. HUGE.

3) I still have 2 out of the 3 of my young men at home and I swear I really don't believe my oldest moved out. I can't understand it, the boy moved out, so why is he always stopping by right at meal time Anyhoo, my kids eat like every night is the last supper and they are about to be crucified so I still save on gallons of milk, eggs and bread.

4) I admit to being price conscious along with quality. I try to plan my meals out for the week. If I'm making pasta sauce with ground beef, do I need 85/15 organic ground beef? nope. it's going into a sauce. If I'm making fresh burgers than yes I'll go up in quality. If I'm getting a rib roast for holiday dinner I'm getting a better quality. If I'm having pot roast that is being cooked in a crock pot, hey give me the non organic less expensive cuts.

 

[97guns]

I had a Costco membership for 15 or 20 years and finally gave it up a couple years ago. Stuff isn't really that much cheaper, I used to go for cheese, tortillas, coffee, butter and staple type stuff but for the $50 membership I can buy a lot of cheese

 

[Walt34]

I can't understand it, the boy moved out, so why is he always stopping by right at meal time

You taught him well, and he listened.

LBYM.

 

[flintnational]

I doubt we get a 25% savings at Costco compared to local stores. From the Costco items we routinely buy, meat, cheese, nuts, milk, avocados, coffee, supplements, bell peppers, organic eggs, wine, paper goods and olive oil are much cheaper at Costco and I think are higher quality in some cases. Some of the veggie and fruit prices seem higher than sale prices at local stores. The gas prices are the cheapest around and pay for our membership. There is always the large quantity issue at Costco. So we do not buy things that we will not use frequently. I would shop Costco simply for the quality of the steaks. If you have a Costco close by and like steaks, wine and need gas, its hard to go wrong with a membership.

FN

 

[athena53]

I'm doing more and more of my regular grocery shopping at Costco and grocery spending is going down. It's hard to quantify- DH's appetite diminished over his last year so he ate less, and he died a year ago. I'm also buying less meat because I make myself more meals centered on veggies and whole grains. So- a few changes that had definite effects on the grocery bill but I'm convinced I get better quality for less money.

 

[Midpack]

It does depend on your shopping habits and your local alternatives. We’ve been Costco members for 3 years now. I was leery when we joined so I kept close track of everything we bought and what it would have cost per unit where we would have bought otherwise. We more than saved the cost of Exec membership even without the AmEx (now Citi) and Costco rebates, that way more than doubled our savings. So it’s been a no brainer for us.

If you’re planning a big ticket purchase that’s available at Costco, you could justify the membership cost with one purchase. And they will refund your membership cost if you’re not satisfied, though I assume there are some terms.

 

[euro]

I find that it is a case by case thing. Some items ARE 25% cheaper than anywhere else, others are cheaper (but not by 25%), others about the same, and a not too insignificant number of items are actually more expensive for me a Costco than elsewhere. I get only the cheaper/significantly cheaper items at Costco. Interestingly, for me, gas is NOT one of the better deals. Costco is usually in the lower third of the local prices, and sometimes toward the lowest, but rarely is it the best deal in town.

 

[audreyh1]

If you like really good wine, it's hard to beat the prices at Costco.

Unless you prefer wine that costs $5 or less per bottle.

 

[FUEGO]

I'm working on a grocery store cost comparison article for my blog. I selected 16 staple items ahead of time before pricing out at each store. Costco didn't have 3 of the 16 items (organic apples, avocados, and canned pinto beans) so I'm presenting a comparison of the 13 that all stores had.

The results weren't too surprising other than I thought Aldi would be cheaper than Walmart by a small margin. I shopped the Aldi a couple miles from the Walmart instead of the one right next to it, so I think the 5% higher prices at Aldi are mostly explained by that discrepancy (since WM and Aldi match prices on several things like milk and eggs it seems).

Costco was 33% more than Walmart and 40% more than Aldi (ignoring the $50-60 or whatever it costs to become a member each year). Kind of what I figured - Costco would be a raw deal for me since Aldi is my regular store and I shop at Walmart often enough (before adding in the extra 1-3% cost of spreading out the $50-60/yr membership fee).

And ye gods Costco is depressing inside - makes Walmart feel like a comfortable shopping experience. Long lines to get a parking space, long lines at check out, long lines at the gas pumps (insert the famous Yogi Berra quote here about it being so busy no one shops there any more). Zero employees wandering the aisles to help you out.

Results for a basket of 13 goods (from lowest cost to highest):
Walmart Supercenter - $16.17
Aldi - $17.00
Costco - $22.62
Trader Joes - $28.68

Items compared (w/ x next to the ones not available at Costco):
apples per pound
x organic apples /lb
x avocados each
bananas per pound
mac n cheese
milk, whole per gallon
loaf bread, 20 oz
chicken breast
pork loin
ground beef /lb
eggs, large dozen
cheerios, 14 oz
peanut butter, 16 oz
x canned pinto beans, 15.5 oz
spaghetti sauce, 24 oz jar
spaghetti noodles

edit: Though not included in my cost comparison, I took a look at the cheeses at Costco. Cheese did appear to be inexpensive, and even cheaper than regular prices at other stores for the high end stuff (gouda, blue cheese, parmesan, etc). But I just wouldn't know what to do with a 2 lb block of blue cheese or parmesan. So I'll keep buying those at Trader Joe's where they are moderately priced and available in ~8 oz packages.

 

[euro]

I'm working on a grocery store cost comparison article for my blog. I selected 16 staple items ahead of time before pricing out at each store. Costco didn't have 3 of the 16 items (organic apples, avocados, and canned pinto beans) so I'm presenting a comparison of the 13 that all stores had.

The results weren't too surprising other than I thought Aldi would be cheaper than Walmart by a small margin. I shopped the Aldi a couple miles from the Walmart instead of the one right next to it, so I think the 5% higher prices at Aldi are mostly explained by that discrepancy (since WM and Aldi match prices on several things like milk and eggs it seems).

Costco was 33% more than Walmart and 40% more than Aldi (ignoring the $50-60 or whatever it costs to become a member each year). Kind of what I figured - Costco would be a raw deal for me since Aldi is my regular store and I shop at Walmart often enough (before adding in the extra 1-3% cost of spreading out the $50-60/yr membership fee).

And ye gods Costco is depressing inside - makes Walmart feel like a comfortable shopping experience. Long lines to get a parking space, long lines at check out, long lines at the gas pumps (insert the famous Yogi Berra quote here about it being so busy no one shops there any more). Zero employees wandering the aisles to help you out.

Results for a basket of 13 goods (from lowest cost to highest):
Walmart Supercenter - $16.17
Aldi - $17.00
Costco - $22.62
Trader Joes - $28.68

Items compared (w/ x next to the ones not available at Costco):
apples per pound
x organic apples /lb
x avocados each
bananas per pound
mac n cheese
milk, whole per gallon
loaf bread, 20 oz
chicken breast
pork loin
ground beef /lb
eggs, large dozen
cheerios, 14 oz
peanut butter, 16 oz
x canned pinto beans, 15.5 oz
spaghetti sauce, 24 oz jar
spaghetti noodles

edit: Though not included in my cost comparison, I took a look at the cheeses at Costco. Cheese did appear to be inexpensive, and even cheaper than regular prices at other stores for the high end stuff (gouda, blue cheese, parmesan, etc). But I just wouldn't know what to do with a 2 lb block of blue cheese or parmesan. So I'll keep buying those at Trader Joe's where they are moderately priced and available in ~8 oz packages.

Thanks fopr that, FUEGO - have you run the same list through Harris Teeter or Food Lion? Just curious. Also, how did you account for package sizes (I don't suppose you can get a 14oz box of Cheerios at Costco)? Finally, for Costco, availability of some items are store dependent. For example, the Apex store carries Avocados and those are, in my opinion, a great deal both on price AND quality.

 

[FUEGO]

Thanks fopr that, FUEGO - have you run the same list through Harris Teeter or Food Lion? Just curious. Also, how did you account for package sizes (I don't suppose you can get a 14oz box of Cheerios at Costco)? Finally, for Costco, availability of some items are store dependent. For example, the Apex store carries Avocados and those are, in my opinion, a great deal both on price AND quality.

No, I didn't run prices at HT or Food Lion though that's a good idea (and probably would be closer to the "grocery stores" OP referenced in his 25% savings comparison statement). My feel is that Food Lion is still cheaper than Costco if you completely ignore sales at Food Lion. Harris teeter is probably the same or maybe more than Costco though I haven't been in one for many years (and my mom is always telling me about sales at HT that are the same or more than the regular price at Walmart/Aldi/Food Lion so I get the sense that HT is just a lot pricier in general ).

I hear you on stock varying by store. I did the Costco/TJ's shopping right after hurricane Irma and I talked to a friend that works at the TJs and she confirmed they had a lot of supply disruptions due to their FL distribution center being shut down (I inquired about loaf bread and she thinks they sometimes have cheaper loaf bread available but only from the FL distro center).

Have you shopped at Aldi? Curious on your take of their prices vs Costco (for something like avocados). And how many do you have to buy at one time at Costco. The package sizes at Costco threw me for a loop since I have a small-ish kitchen, pantry, fridge, and freezer and only feed 5 in the household

You are right about the cheerios - 40.7 ounces was the only size they had which is about 3 "regular" size boxes. I believe costco cheerios were packaged as 2 big boxes sold as 1 unit. I broke the prices down to unit weight or typical size (14 oz box of cheerios, 24 oz jar of spaghetti sauce, 16 oz peanut butter, etc).

edit: this cost comparison is an interesting exercise but not as useful for me as it looks. I tend to shop the grocery store sales for a lot of these staples (especially meat and produce) so I often pay 25-50% less than the prices I noted at even the cheapest of the four stores.

 

[sengsational]

Yeah, thanks for posting your research results Fuego!

Since I didn't want the OP to look like an advertisement, I left out the fact that it was a BJ's that had the 25% promo. We simply do not have a Costco nearby, but the BJ's is exactly the same distance from our house as DW's regular WalMart super center.

So DW's usual is the Walmart, and we get a few things at Trader Joe's. We have had a Sam's membership on and off, but only go there for the paper goods and on occasion get large quantity items like pork ribs. We have an Aldi, but the first time DW went there, they didn't have something very basic...I think it was soy sauce or something like that. Not wanting to "run around to 15 different grocery stores", she's decided to avoid Aldi. They just expanded the Aldi, though, and it's really close to our house, so maybe I'll see if I can convince her to try it again. But based on the evidence you presented, maybe sticking with Walmart isn't so bad.

 

[97guns]

I could have comparison shopped them but I knew by feeling that Costco was higher, plus they force you to buy bulk.one thing I found about Costco was that their return policy was excellent, it's almost worth the $50 for it.

My brother took a beat up rusted out BBQ back that had a lifetime warranty and the burner stopped working, they exchanged it for s new one. He did the same thing with an office chair that his cat clawed up really bad but the pneumatic pump died.

 

[FUEGO]

Yeah, thanks for posting your research results Fuego!

Since I didn't want the OP to look like an advertisement, I left out the fact that it was a BJ's that had the 25% promo. We simply do not have a Costco nearby, but the BJ's is exactly the same distance from our house as DW's regular WalMart super center.

So DW's usual is the Walmart, and we get a few things at Trader Joe's. We have had a Sam's membership on and off, but only go there for the paper goods and on occasion get large quantity items like pork ribs. We have an Aldi, but the first time DW went there, they didn't have something very basic...I think it was soy sauce or something like that. Not wanting to "run around to 15 different grocery stores", she's decided to avoid Aldi. They just expanded the Aldi, though, and it's really close to our house, so maybe I'll see if I can convince her to try it again. But based on the evidence you presented, maybe sticking with Walmart isn't so bad.

Yeah, I was surprised that Walmart compared so favorably to Aldi. They must have lowered prices at ours in the past year or two because it used to be a little higher for most things vs Aldi. Definitely check out the renovated Aldi - ours is very nice and I noticed they have the whole foods crowd shopping there now (lots of moms wearing yoga pants). Ours definitely has soy sauce at a very attractive price but we go for the top shelf 1/2 gallon name brand jugs at our Asian grocery store for $7.

I get the impression that Costco is the highest price of the three main warehouse clubs but haven't seen any cost comparisons to verify that. I know Sam's club, for example, has some potential savings vs Walmart/Aldi but I just can't bear to spend 1-2 hours to deal with shopping there (and run to ANOTHER grocery store each week ). So perhaps BJs or Sams is the way to go.

 

[jazz4cash]

Wondering what OP meant by "the pain of switching". We routinely use Aldi, HT, Giant Food and BJs. Being retired, I do most of the shopping and just buy what I like best at each one. We do big shops at BJs for family dinners but otherwise just get specific items like coffee, soaps, toothpaste. I have to balance the savings at BJs against the stuff I wouldn't buy otherwise. We get $35 membership through Farm Bureau which also gets us discount at Nationwide insurance. Aldi is my favorite. We had little choice growing up but Safeway that dominated the market has closed many locations.

 

[sengsational]

j4c, it sounds like you don't mind shopping too much, but for the shopper in my family, she wants to know exactly where everything is and get out as quickly as possible. Changing her primary store means learning where the new store "hides everything", lol! It's only pain to me listening to her, hehe!

Just to show you how DW perceives the pain of learning a new grocery store...she has been known to completely quit shopping somewhere if the store goes through one of those re-arrangement things. I say "what's the big deal, you'll learn the new layout", but she can't hear me because of the steam shooting out of her ears!

 

[timo2]

I'm at least as concerned with quality as with price. Costco has some quality items that are better than the grocery store, especially in seafood and the Kirtland brand house items. We pretty much will not buy seafood anywhere else but Costco, as they do documented quality control and accurate place of origin labeling.

If one only is concerned with price, than obviously quality will be no concern to you. The last time I bought a steak at Walmart, is was the worst piece of meat I ever purchased in a store.

 

[Another Reader]

The supply chain is poorly managed at WalMart, the meat and produce are not the best quality to begin with and tend to be old. The frozen stuff collects frost on it and I'm never sure if their freezers operate properly. Walmart is for cheap dishwasher detergent and window cleaner. Sometimes they are cheaper than Costco for paper goods.

I don't think Costco fish is very fresh and the salmon was tasteless and mealy when I bought it.

I buy boneless, skinless chicken pieces when they are on sale at Sprouts and freeze them in cooking quantities. The chicken has good flavor and freezes well. Beef and pork are not on the menu. Beef is too expensive and has no flavor no matter where you buy it. Costco beef is not as good as what is sold in the small local chain, but that's not enough of an improvement to pay the high price. The stomachs here do better with fish and chicken than pork and beef anyway.

Trader Joe's was cheap 20 years ago. Not today. I still buy some things there, peanut butter and olive oil are two things I always buy there. Sprouts produce is generally better than the big chains' produce and they have good sales.

We buy Safeway loss leaders for things we use or like. The local high priced Whole Foods competitor has Clover milk at a very good price and some good albeit expensive produce. Everything else is breathtakingly expensive. I call it the neighborhood convenience store, since it is several miles closer than the chains. No Aldi's or Winco here.