There are certain things in life I just assume: the sky is blue, Grandma’s food is safe to eat, and Wal-Mart is the cheapest place to buy groceries. Last week my assumptions have been shaken to the core. No, my grandmother didn’t poison me, and the sky didn’t turn neon green; I found out that Wal-Mart might not have the lowest prices when it comes to groceries! All these year of thinking I’m saving money could be lies. A group in my supply chain management class did a study on pricing and grocery stores (only in Reno). As you would expect, most of the people in my class (including me) assumed Wal-Mart would be the cheapest. Once their presentation was over they did the big reveal, and their findings suggested that Safeway was the cheapest grocery store in our area. Some of the stores they compared were: Riley’s, Wal-Mart, Safeway, Costco, Whole Foods, and a local Co-Op. They got their results by making a large shopping list and going around to each of the stores to figure out how much money the groceries would cost when buying comparable items.
My first instinct was that they’re full of it. I’ve shopped at Safeway and Wal-Mart, and I truly believed Wal-Mart was cheaper (which is why most poor college kinds shop at Wal-Mart). I could see a lot of room for error in their calculations. I had no idea if the brands they bought were the same ones that I usually get. I brushed it off. They were wrong. The next class period I overheard everyone talking, and apparently an article came out in some big newspaper that reinforces their findings: Wal-Mart isn’t the cheapest grocery store. I’ve looked everywhere, but I can’t find the article (if you have seen this article please let me know where it is). I’m choosing to believe my classmates, because I doubt they plotted against me to change where I buy my groceries. I’m wondering to myself, how can this be? Have I been brain-washed by Wal-Mart? Please tell me I’m not putting up with their terrible crowds and lighting for nothing! Main goal has been to save money by finding the cheapest groceries, and I might have failed!
I’ll probably continue to shop at Wal-Mart because I swear it’s cheaper, but there must be some truth to their findings. Maybe it’s time for me to do some research of my own (I do need to go grocery shopping today). I may have been making a huge personal finance mistake by assuming that Wal-Mart’s atmosphere is terrible so their prices must be the lowest. Have you done your research on where to buy your groceries? What did you find?