|
Our price comparisons and ratings of stores for quality show the
results of our market-basket price survey and our most recent surveys of
consumers on supermarket quality and service. Here are some key findings
The areas price standouts were DeMoulas Market Basket, Walmart Supercenter,
and Target.
DeMoulas Market Basket had prices that averaged 21 percent lower than the
average of those found at surveyed stores belonging to Shaws and Stop
& Shop, the areas largest chains. Walmarts prices were about 19 percent
lower than the Shaws/Stop & Shop average. Targets prices were about 14
percent lower. For a family that spends $150 per week at the supermarket,
this 14-to-21-percent price difference might be expected to total $1,100
to over $1,600 during the course of a year.
Targets recent reconfiguration of a handful of area stores to include
groceries means more Boston area shoppers have low-cost supermarket options
nearby.
DeMoulas Market Basket and Walmart Supercenter stores will not be conveniently
located for many Boston area shoppersalthough many price-conscious shoppers
will be able to take advantage of their low prices with a little trip planningpossibly
making a grocery stop when returning from a business meeting, a trip to
the mall, or other occasional excursions. Targets continued reconfiguration
of area stores to include a basic selection of groceries will hopefully
mean Boston area consumers will have even more low-cost supermarket options.
But the newly configured Target store we shopped had in stock only about
56 percent of the items in our market basket, so using a Target may mean
youll have to supplement your grocery shopping sometimes with visits to
conventional supermarkets.
On average, prices at the Stop & Shop stores we shopped were about six
percent lower than those at surveyed Shaws stores.
We found relatively large store-to-store price differences within both
the Shaws chain and the Stop & Shop chain.
Prices at the lowest priced store we shopped for Stop & Shop were nine
percent lower than its highest priced surveyed store; prices at the lowest
priced store for Shaws were about eight percent lower than its highest
priced surveyed store.
Interestingly, the stores we shopped for Shaws and Stop & Shop that had
the lowest prices were both in North Shore communitieswhich means they
are located near most of the DeMoulas Market Basket stores. It seems that
competition, where it exists in the Boston area, works.
On the quality side, Shaws and Stop & Shop got relatively poor ratings
from their customers we surveyed.
In a limited survey of CHECKBOOKs online subscribers, Shaws and Stop
& Shop rated at the bottom of the list for quality of fresh produce,
quality of meats, staff helpfulness/pleasantness, speed of checkout,
and overall quality. For overall quality, Shaws was rated superior
overall by only 23 percent of its surveyed customers and Stop & Shop by
only 26 percent. In contrast, Hannaford Supermarkets, Roche Bros., Trader
Joes, and Whole Foods Market were all rated superior overall by more
than 70 percent of their surveyed customers.
Price leader DeMoulas Market Basket also scored low on our survey of customers,
but not as low as its much more expensive Shaws and Stop & Shop competitors.
DeMoulas Market Basket was rated superior overall by 42 percent of its
surveyed customers.
Hannaford Supermarkets proves it is possible to offer reasonable prices
and still provide high-quality service.
The Hannaford Supermarkets chain, with about a dozen Boston area stores,
had prices that were about six percent lower than the Shaws/Stop & Shop
average, and the chain also received favorable ratings for overall quality.
Trader Joes overall ratings from our customer survey were among the highest,
yet we found its prices arent necessarily higher than the big chains.
Since the market basket we used for our price survey is largely made up
of national-brand products, and because Trader Joes offers only its own
brands, we couldnt include it in our standard price comparisons that are
based on our standard market basket of items. Instead, we had to shop Trader
Joes using a special survey. In this survey, we included the same fresh
produce, meats, and dairy items as we use in our standard survey. For the
national-brand items on our list, we first compared the prices of Trader
Joes store brands to the prices charged by the conventional supermarkets
for the comparable national-brand items in our market basket. Then, for
a second comparison, we compared Trader Joes prices to those charged by
the supermarkets for the least expensive comparable item of any brand (including
generic brands) they carried. (When comparing prices, we used per-unit
pricingfor example, price per ounce.)
The table below shows the results of these comparisons.
| Shaw's (Salem) | $98 | $103 | $103 | $104 | $100 | $88 | 88% |
| Stop & Shop (Peabody) | $91 | $97 | $92 | $96 | $83 | $93 | 86% |
| Trader Joe's (Brookline) | $96 | $123 | $84 | $120 | $136 | $94 | 33% |
* Price index scores compare stores' prices to the average prices found at surveyed Shaw's and Stop & Shop stores.
-
In our comparison of Trader Joes prices versus the prices of comparable,
national-brand items, we found that Trader Joes prices were about four
percent lower than the average prices found at Shaws and Stop & Shop.
-
When we compared Trader Joes prices to the Shaws/Stop & Shop average,
assuming a shopper would buy at Shaws or Stop & Shop the cheapest brand
(or generic brand) comparable to each item in our market basket, Trader
Joes price advantage disappeared; in fact, we found its prices were 23
percent higher than the Shaws/Stop & Shop average. (But keep in mind that
this second comparison doesnt take into account product quality, and Trader
Joes received higher overall ratings from its customers than Shaws or
Stop & Shop.)
-
For produce, Trader Joes prices for the items it carried were about 48
percent higher than the average prices at Shaws and Stop & Shop.
-
For meat, Trader Joes prices were about four percent higher than the Shaws/Stop
& Shop average.
The highest prices among stores we surveyed were found at Whole Foods Market.
Whole Foods prices were 22 percent higher than the average of prices at
Shaws and Stop & Shopfor the limited number of comparable items we could
find at each chain. On the other hand, Whole Foods consistently gets very
high scores from its customers on our surveys on quality of fresh produce
and meat, and many of the items we could compare between Whole Foods and
the other chains were fresh produce and meat items.
(See our article on Buying Organic Food for more discussion of costs of organic food.)
When shopping stores that offer store brand or generic products, you save
by substituting these products for national brands.
When we allowed the substitution of cheaper generic and store brands for
about one-fifth of the items in our price-shopping market basket, the total
cost for our market basket dropped by about seven percent, on average,
at the two big chains.
For the items that could be compared, based on unit prices (price per pound,
for example), the membership warehouse stores we surveyed offered dramatic
savings.
The surveyed Costco store, for example, beat the Shaws store we compared
it to by a whopping 36 percent. Compared to that Shaws store, the savings
were also about 36 percent at the Sams Club store we surveyed and about
33 percent for BJs.
Since you cant typically get everything you need at a warehouse store,
we looked at the savings you might gain by shopping at both a warehouse
store and at a supermarket, assuming you would purchase the lowest cost
size available at either place. We found, for example, that by including
Costco on your shopping schedule along with a Shaws store, you might save
about 14 percent compared with shopping at the Shaws store alone.
For more information on how warehouse stores compared on price, go to our
section Buying in Bulk: Shopping at Warehouse Stores.
|