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Clark Howard's Tips

July 26, 2007

The U.S. government has an annoying habit of ignoring the rising costs of food and energy when they calculate and issue inflation reports. But consumers can't ignore them. Food costs have been accelerating at a pretty significant clip lately.

But there are some trends in the supermarket industry that can make a huge difference in what you pay for groceries. There's a new chain that's quietly and steadily expanding in the United States that's making even WalMart worried. It's called Aldi. It's now in 27 states.

When Aldi moves into a metro area, they actually try to stay invisible because they don't want to spark retaliation by the traditional supermarkets.

Their stores are tiny, about the size of a corner drug store. They only stock a limited selection, offering most of the things you need, but not necessarily everything. This means they have less inventory to stock, so things are fresher and turn over more quickly.

Most of the items are private label, too, meaning they can get better deals. The typical savings to a shopper is 40 percent — double what you'd save in a Walmart supercenter.

Keep in mind there aren't that many employees, so they're not always that neat and tidy. Plus you have to bring your own sacks and bag them up yourself. But if that doesn't bother you, it's a great opportunity to save a lot of money.

Consumer advice courtesy of