Costco Undercuts Walmart by 21.4% in Tennessee While Whole Foods Charges 39.7% Premium

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Costco is 21.4% cheaper than Walmart in Tennessee while Whole Foods charges a 39.7% premium. Only three of Tennessee’s 12 measured grocers undercut Walmart’s prices, potentially reinforcing Walmart’s value proposition within the state.

1. Survey Methodology

A recent price survey of national-brand grocery items in six U.S. cities used Walmart as the baseline, revealing price gaps over 33% between chains. Data collection occurred in late summer 2025 with in-store shelf prices.

2. Tennessee Price Rankings

In Tennessee’s 12 measured store chains, Costco was 21.4% cheaper than Walmart, with Aldi and BJ’s also undercutting. Whole Foods topped the list with a 39.7% premium over Walmart.

3. Implications for Walmart

Only three Tennessee grocers outpriced Walmart in the survey, reinforcing Walmart’s competitive low-price positioning in the state and potential to capture budget-focused shoppers.

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