When Rachel Negro-Henderson began shopping regularly at Aldi during the pandemic after her husband lost his coaching job, she sometimes felt self-conscious running into acquaintances at the store. That discomfort has faded. Now she sees neighbors and friends there all the time, and most are upfront about why they shop the chain: to save money while getting comparable products.
A range of forces has pushed more people toward budget grocers and warehouse clubs. Food insecurity rose sharply during the COVID-19 pandemic, grocery prices have climbed in recent years, and shoppers face inflation plus corporate tactics such as shrinkflation and dynamic pricing enabled by electronic shelf labels. Many consumers say they simply will not tolerate paying more for food.
Grocery industry analyst Phil Lempert notes that discounters have been improving their offerings and shaking off old stereotypes. They keep prices low by operating efficiently: smaller footprints, fewer products on offer, leaner staffs and simplified operations. For example, some stores place products on shelves directly in their shipping boxes to cut labor time. The stores tend to be bare-bones, trading service departments and fancy signage for lower operating costs and lower prices.
European discount chains Aldi and Lidl have expanded rapidly in the U.S., with Aldi reporting 17 million new U.S. customers last year, nearly 200 new store openings and plans for roughly 180 more stores this year. Warehouse clubs like Costco and Sam’s Club also draw customers who can buy in bulk at modest per-unit prices. Costco, famous for low-cost staples such as its hot dog-and-soda deal and rotisserie chicken, reported $28.41 billion in net sales for the March retail month, up about 11.3 percent from roughly the same period the prior year.
Price comparisons back up what shoppers report. Consumer Reports analysis of a basket of goods found that Aldi and Lidl priced items more than 8 percent below Walmart. BJ’s Wholesale Club appeared about 21 percent cheaper than Walmart, and Costco about 21.4 percent cheaper. Only a handful of retailers tested were cheaper than Walmart overall.
Another factor helping discounters win over shoppers is the rise in acceptance of store brands. The Private Label Manufacturers Association reports store-brand sales rising roughly three times faster than national-name brands in the past year, as consumers learn that private-label products can be high quality while costing less.
That said, discount stores are not a universal solution. They typically carry fewer SKUs, so shoppers like Negro-Henderson still make additional stops for specialty items, deli meats or particular brands. For many, the tradeoff is worth it: fewer expenses overall even if it means a quick extra trip for one or two items.
Social media has amplified the trend, with creators showcasing haul videos, bargain finds and recipes built around discount-store purchases. Some creators focus on stretching limited grocery budgets by reviving Depression-era or wartime recipes or reworking dishes to use pantry staples. One creator who posts budget cooking tips says the most practical change is a mindset shift: to drop any shame about using lower-cost options and see the choices as pragmatic rather than humiliating.
Market research suggests these shopping habits may persist. A December survey from AlixPartners found most respondents planned to spend the same or more on food in the coming year but intended to seek cheaper grocery options and curb impulse purchases. Industry analysts expect an ongoing emphasis on price and value, especially among younger shoppers who care less about supermarket bells and whistles and more about getting affordable groceries.
For families like the Hendersons, the equation is simple: lower prices, good quality on many store-brand items, and environmental or sustainability claims that matter to them. For others, the move toward discounters reflects necessity, a desire to stretch budgets, or both. Either way, shopping at Aldi, Lidl, Costco or similar outlets has become a mainstream strategy for managing household food costs rather than something to hide.