Walmart Loses Affordability Crown as Costco and BJ’s Undercut Prices
Consumer Reports’ February survey finds Walmart no longer the cheapest grocery chain, with Costco prices 21.4% lower and BJ’s 21% lower than Walmart’s. USDA data shows grocery costs rose 23.6% from 2020–2024 and forecasts a further 2.5% increase in 2026.
1. Consumer Reports Pricing Survey
Consumer Reports’ February survey used Walmart’s average prices as a baseline and found five chains undercut them: Costco 21.4% lower, BJ’s 21% lower, Lidl 8.5% lower, Aldi 8.3% lower and WinCo 3.3% lower. It also ranked Whole Foods 39.7% costlier and other grocers like Shaw’s and Albertsons over 30% more expensive than Walmart.
2. Price Trends and Outlook
USDA data indicates grocery prices have jumped 23.6% from 2020–2024 and are projected to rise 2.5% in 2026. Persistent inflation may challenge Walmart’s efforts to maintain competitive pricing and could impact profitability if cost pressures cannot be absorbed.