One Of America's Cheapest Grocery Stores Isn't What You'd Expect

If you do the shopping for your household, chances are you can rattle off the price of milk at every grocery store and gas station in a 10-mile radius. You also likely know all the daily deals on produce, from the supermarket sale paper to the roadside fruit seller. Maybe you always check unit price numbers for savings, or perhaps you're a casual coupon clipper who has recently discovered that inflation (and shrinkflation) makes filling your fridge feel like emptying your bank account.

Whether you're a lifelong smart shopper or just recently encouraged to become one, trying to save money on groceries inspires us all to get creative. Even one of America's cheapest grocery stores today isn't what you'd expect; in fact, it isn't technically a grocery store at all: it's a warehouse club. A variety of outlets, from U.S. News & World Report to AARP, have found that Sam's Club, the members-only sister store to Walmart, is one of the best bets for budget-conscious grocery shoppers.

For a relatively small annual membership fee of $50 (sometimes on sale for $25), Sam's Club shoppers are promised a world of bulk savings that more standard grocery stores may not be able to provide. Let's take a closer look at the Sam's Club savings potential, as well as some groceries (and treats) the club has on offer.

Comparing prices between a standard grocery store and a warehouse retailer like Sam's Club can feel like comparing apples and an 8-pound bag of oranges. Keep the bulk size of many Sam's Club products in mind as we compare prices on some popular shopping-cart staples: eggs, bananas, milk, bread, and a low-cost high-protein dinner option: chicken.

Plenty of websites and videos regularly create cart-by-cart price comparisons of Sam's Club groceries with other big-box and "normal" grocery stores. In 2023, AARP even found that Sam's Club came in about $12.66 cheaper than Costco and BJ's for a 30-item order. But since grocery needs vary and prices fluctuate, here we compare Sam's Club to another member of its big-savings family: Walmart.

At Sam's Club, two dozen Member's Mark cage-free grade A large white eggs cost $4.98, compared to one dozen of Walmart's Great Value cage-free large white eggs at $3.74. Three pounds of organic bananas, meanwhile, sell for $1.97 at Sam's Club, while Walmart sells one bunch for $2.26. Both stores sell a gallon of whole milk for $4.26.

As far as bread, Sam's Club sells a two-pack of Nature's Own Honey Wheat bread for $4.98, while Walmart sells by the loaf for $3.64. For chicken, let's compare a hot-to-go rotisserie chicken: Sam's Club offers one for $4.98, while Walmart's is about a dollar more at $5.97.

Whether you're hitting the target percentage of what amount of your income you should be spending on groceries or trying to survive on a shoestring, chances are you've spent more time comparison-shopping than you'd care to admit. Even the most coupon clip-happy shopper grows weary of balancing the budget to only save on basic needs. What savings does Sam's Club stock for those items that make a grocery order fun, and not just functional?

Sam's Club sells a package of eight frozen Marie Callender's chicken pot pies for $12.98, making one full serving of easily cooked comfort food containing 17 grams of protein cost just $1.68 each. Savvy shoppers looking to class things up for game night or a get-together can score a 14-count pack of Member's Mark bacon wrapped shrimp with pepper jack cheese for $11.98, or stock the freezer with 30 individually wrapped State Fair classic corn dogs for $13.98.

Lunchtime nibbles are a major savings opportunity at Sam's Club. Member's Mark deli meats tend to run below market price for each pre-packaged pound, and name-brand options from companies like Godshall's, Oscar Mayer, and Busseto can also be found. Snack packs also abound at Sam's Club, which could mean big savings depending on shoppers' needs and tastes. For example, as of this writing, Sam's Club sells a 50-pack of Frito Lay snack products (including Doritos, Chewy granola bars, and Cheetos) for $19.78, making each pack within about 40 cents each.

Some shoppers may consider coffee, soda, beer, and wine a list of vices rather than standard items on a weekly grocery list. However, judging by how much Americans spend on alcohol each year, these "bonus" beverages and the savings Sam's Club can serve up with them deserve a closer look.

A Sam's Club rival might be a great place to save big on wine, but Sam's Club more than holds its own in the fermented grape juice department. The club offers deals on private-label Member's Mark wines and popular producers like Josh Cellars and Stella Rosa year-round, with added deals around holiday times. For example, a Menage a Trois three-bottle gift set sells for $20.98 in the lead-up to Thanksgiving.

Sam's Club offers a variety of coffee formats, ranging from bulk boxes of single-serve Member's Mark pods to massive bags of name-brand beans. A Fair Trade-certified variety 60-pack of Member's Mark winter coffee options, including flavors like Maple Pecan and Cinnamon Roasted Almond, will run you $14.98, while a 40-oz bag of whole bean Starbucks Espresso Roast retails for $18.98. If cola is more your poison, you can get a 35-pack of 12-ounce Coca Cola for $19.52 at Sam's Club, which rounds up to 56 cents a can. Into a more innocent beverage? Sam's Club sells a 24-count variety pack of La Croix sparkling water for $8.98, or about 37 cents a can.

Sam's Club is one of the largest grocery stores in the nation, located only a few pegs down the ever-shifting list from sister company Walmart. Much like Costco and other warehouse clubs, membership fees provide much of the chain's net income, and cover operational costs. Profit margins can be kept thin in order to grab as much market share as possible.

Sam's Club buys in extreme bulk, and passes on bulk savings to the customer. Along with Walmart, it works with providers across the entire supply chain to control prices on many of its offerings, especially private-label Member's Mark products. While Walmart and Sam's Club are separate companies, the sheer negotiating power of one company may help the other when deciding on partners, from the start of production to the final mile of delivery to Sam's Club stores.

Sam's Club leadership is also highly attuned to how adopting certain technology can save the company (and customers) money, as well as increase revenues. Sam's Club has implemented AI receipt-verification, opened Scan & Go-only stores with automated checkout, and continues to refine automated fulfillment techniques. These practices keep costs down, though at a cost: increasingly eliminating the need for paid human workers.

Paying for memberships to warehouse clubs can feel like paying for media streaming services: Everything comes at a cost, but not everything you want is offered by one provider. The truth is, many savvy shoppers may find the best savings with a mix of warehouse club memberships and specialty shopping at certain discount grocery-shopping options, like Aldi or Target.

The true savvy shopper can make the most of their Sam's Club membership by doing some absolutely tedious research to save big in the long run. You can create a list of most-used, most-purchased grocery basics, itemize usual monthly splurge or specialty items, then do a quick online search and compare prices between Sam's Club and those at other go-to grocery stores. If the Sam's Club deals fit your needs and beat out the competition, you have your winner winner (cheap) chicken dinner all set.

Also, while unofficially shared memberships aren't always honored at warehouse clubs, a clever and trustworthy team-up between shopping "families" of friends and neighbors splitting membership and grocery fees can save shoppers even more at Sam's Club. If Sam's Club leadership can get creative by coming up with pizza-making robots for their "store of the future," you and your office mates can get creative coming up with ways to save on groceries.