Amid food inflation, more shoppers are turning to dollar stores for groceries

Of all the rising costs, the skyrocketing grocery bills were especially painful.

Although the consumer price index, an inflation measure that measures the cost of a wide variety of goods and services, began to fall from its last reading, food prices rose again, the U.S. Department of Labor reported.

Over the past year, food prices have generally increased by more than 10%. Only egg prices rose by 60%, butter by more than 31% and lettuce by 25%, according to employment data through December.

As a result, consumers are looking for every possible way to save. For some, that means shopping at their local dollar store.

According to a recent report from Coresight Research, the share of discount stores in total grocery spending is slowly creeping up. Already, more than 1 in 5 consumers purchase groceries from dollar stores, according to Coresight’s weekly US Consumer Tracker.

A separate study published in the American Journal of Public Health also found that dollar stores were the fastest growing food retailers, in part because they are expanding at an unparalleled rate, especially in rural areas.

More from personal finance:
64% of Americans live paycheck to paycheck
Nearly half of Americans think we are already in a recession
Why inflation increased by 10 items in 2022

To entice shoppers, the country’s category giants – Dollar General And Money treewhich owns Family Dollar — have added and remodeled stores with more refrigeration units and expanded grocery offerings, including healthier foods and fresh produce, the Coresight report found.

“If the two retailers continue to improve the quality of their fresh foods while maintaining the low prices of their brands, chances are it will strengthen their value proposition with their existing consumer base and also attract new customers from higher end customers. ” retailers,” the report said.

Today, customers are considering alternatives, especially if that means better prices, says Julie Ramhold, consumer analyst at DealNews. “It’s about your dollar going a little bit further.”

However, the value isn’t always there, she added. Despite the name, “you’ll be hard-pressed to find items that cost as little as a dollar.” It is important to check the unit price and compare it with what is offered in other stores, including walmart and Trader Joe’s, Ramhold said.

In addition, the grocery assortment will still be smaller than what you would find in a supermarket or department store club. For example, fruit and vegetable selection may be limited to more shelf-stable items such as bagged salad mixes and bananas, Ramhold said.

Further, with less sales, you are more likely to find items near their expiration date. “It’s important to check the expiration date,” she cautioned.

That’s why Ramhold advises customers to focus on staples, such as rice, pasta and dried beans, which can also be adapted to different cuisines and don’t cost much.

(“The Dollar Store Cookbook,” available on Amazon, has recipes usually limited to such pantry-stable ingredients, including a creamed tuna on toast made with canned tuna and cream of celery soup.)

As food inflation continues, savings experts share their top tips for spending less on groceries wherever you shop.

1. Take a closer look at sales. Generic brands can be 10% to 30% cheaper than their “premium” counterparts and just as good – but that’s not always the case. Name brands may currently be offering bigger discounts than usual to maintain loyalty, so it’s important to check the price.
2. Plan your meals. If you plan your meals in advance, you’re more likely to buy only the things you need, said Lisa Thompson, a savings expert at Coupons.com. If planning isn’t your thing, at least shop with a rough idea of ​​what you’ll be cooking for the next week to stay on track and avoid impulse buys, she added.
3. Buy in bulk. When it comes to the rest of the items on your list, you can save more by buying in bulk. Joining a wholesale club like Costco, Sam’s Club, or BJ’s often gets you the best price per unit for condiments and non-perishables. Next, keep your pantry organized, with food closer to its expiration date in the front so you know to cook or consume it before it goes bad, advised consumer savings expert Andrea Woroch.
4. Use a cash back app. Ibotta and Checkout 51 are two of the most popular in-store cashback apps, according to Ramhold. The average Ibotta user earns between $10 and $20 per month, but more active users can earn as much as $100 to $300 per month, a spokesperson told TBEN.
5. Pay with the right card. While a generic cash-back card like the Citi Double Cash Card can earn you 2%, there are specific grocery rewards cards that can earn you up to 6% back at supermarkets across the country, such as American Express’ Blue Cash Preferred Card. . TBEN’s Select has a full roundup of the best grocery shopping cards, along with the APRs and annual fees.

Subscribe to TBEN on YouTube.