Aldi Says You Can Save Up to 40% on Its Groceries. Is That True?

If you're looking to cut your grocery costs, buying your basics in low-cost stores like Aldi is an excellent place to start. Aldi's huge range of quality own-label goods and its clean but no-frills approach have gained it a huge following in the U.S. 

In a recent press release, Aldi CEO Jason Hart said one reason customers try out the brand is a potential 40% savings on groceries. I'm a big Aldi fan. I first discovered the store's low prices when I went to Germany as a teenager. Even so, a 40% saving is a dramatic claim -- and one I wanted to put to the test.

How Aldi prices stand up against the competition

Comparing prices is a key way to save money, whether you're buying groceries or big-ticket items like TVs or fridges. Some great price comparison apps are available, but it's not an exact science as you can't always compare apples with apples. Not only do package sizes often differ, the quality of what's inside may vary as well.

I put together a basket of 20 everyday items, including beef, chicken, pasta, milk, juice, beans, vegetables, and more. I used it to compare Aldi's prices online with Walmart, Kroger, and Whole Foods. I stuck to store brands, matched products as exactly as possible, and used the price per ounce to even out any sizing differences.

The Aldi basket was cheaper than both Walmart and Kroger. But you'd have to be a Whole Foods shopper to cut your grocery bill by over 40% by switching stores.

It's also worth noting that you can't yet use SNAP EBT payments to shop at Aldi online. If you're a SNAP recipient, you can only use your EBT card in Aldi stores. In contrast, Walmart.com, Kroger.com, and Whole Foods Market all accept EBT payments for online purchases.

How to save money on your groceries

It isn't feasible to do a detailed price comparison every time you go to the store. Nevertheless, the growth of online shopping makes it easier than ever to keep an eye on the cost of products you buy regularly. This will help you get the best deals, particularly if you have several nearby stores to choose from. 

For example, rice and chicken thighs were significantly cheaper at Aldi. Walmart stood out for its low-cost parmesan cheese and tomato sauce.

Our price comparison supports the advice that switching to a budget grocery store and buying store-brand products are good ways to save money. Here are some other ways to cut your grocery spending:

• Make a list: Not only will a list save you time and money, you'll also reduce the risk of unused items going bad at the back of your fridge. Whenever I make the mistake of going to the grocery store without a list, I always regret it. I come out with a bunch of things I didn't need and often forget enough essentials that I have to go back again. 
• Maximize your discounts and rewards: Cash back apps will pay you a percentage of your spending as well as bonuses for specific purchases. Combine them with credit card rewards or other coupons and in-store discounts. That way, you can power up your bonuses on your everyday spending.
• Track your spending: A budget will help you know how much you can spend on each part of your life, whether it's housing or having fun. Set a realistic grocery budget and use a budgeting app to help you stick to it.
• Buy in bulk: I didn't include warehouse clubs like Costco in the price comparison because the membership fee and bulk savings muddy the waters. Still, if you have space in your kitchen, bulk buying can be an excellent way to save money -- even more so if you're shopping for a big household. 

Key takeaway

Aldi has expanded rapidly since it opened its first U.S. store in 1976. You may not be able to save 40% on your groceries, but the chain still has some great quality products at super affordable prices. If you haven't shopped there before, get your quarter ready for the shopping cart, gather up your reusable bags, and give it a whirl.