Cities Where People Spend the Most & Least on Groceries – WalletHub Study

As food prices continue to climb in recent years, the personal-finance company WalletHub today published its updated report, Cities Where People Spend the Most & Least on Groceries. The report examines which U.S. cities offer the least affordable grocery bills relative to what residents earn.

To identify the cities where groceries take up the biggest share of household income, WalletHub compared the prices of 26 everyday grocery items in 100 of the nation’s largest cities. We then measured the total cost of those items against median household income in each city.

To view the full report and your city’s rank, please visit:
https://wallethub.com/edu/cities-where-people-spend-the-most-least-on-groceries/147476

“In the cities where people spend the most money on groceries, residents often have low incomes on top of seeing high sticker prices on common grocery items. Shoppers should take advantage of sales and coupons, buy generic items and buy in bulk if possible in order to save money. It’s also a good idea to use a credit card that gives a good amount of rewards on grocery purchases and pay it off in full each month.”
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“People in Detroit spend the most on groceries, which have an average cost of over 4% of the median household income, the highest percentage in the country. For comparison, Fremont, CA, residents spend an average of less than 1% of their income on groceries, the lowest percentage.”

– Chip Lupo, WalletHub Analyst

Expert Commentary

What tips do you have to help people avoid overspending on groceries?

“The three key elements to not overspending on groceries are preparation, a list and a budget… Preparation makes sure that you are purchasing what you need and sets expectations for how much your shopping should cost… The list is your map to grocery success. Retailers are well skilled at understanding how to encourage you to make unplanned purchases. Their skill can account to upwards 60% of grocery store purchases identified as unplanned or impulse purchases. Your list can help keep you grounded and on budget… A great benefit of online shopping is you know how much it is going to cost before you hit purchase. This allows you to make the necessary adjustments to your grocery cart. Further, you’re not in the store where it is easy to pull you off of your list… It is also important to know how much you can afford to spend before you hit the grocery store. I remember my parents taking cash to the store so they could not overspend. In today’s environment, most transactions are handled with a credit card. Credit card companies even incentivize spending by awarding more points for grocery purchases. So go in, knowing what you can afford to spend.”
Robert Paul Jones, Ph.D. – Associate Professor, Texas Tech University

How important is budgeting when it comes to saving money on groceries?

“Budgeting is the skill that helps you succeed. We are at present experiencing a time when grocery prices are rising constantly. Shoppers need to be armed with the tools to help them stick to a budget. You can check a grocery store’s weekly flyer for ads as well as check their pricing online as part of your preparation. You might find special pricing that will help you achieve your budget goal. You might be able to identify a private label (the store’s own brand) that provides you the same product at a better price than a national brand. If you live near a Kroger, they have one of the most extensive private label programs that cover the gamut from basics to import products. Remember, the money has to come from somewhere. So, if you are overspending on your grocery budget, some other budget will have to be cut.”
Robert Paul Jones, Ph.D. – Associate Professor, Texas Tech University

How do you think the current social and economic environment is influencing household spending on groceries?

“Shoppers today are under a lot of stress trying to manage their household budgets. It would be easier to manage if only grocery prices were rising. However, gas prices, apparel, automobiles, homes, interest rates, and more are also rising as well. Unfortunately, nobody’s salary is keeping up with all the additional costs. As a result, we are seeing a lot of switching behaviors. Shoppers are looking for a lot of ways to save at the grocery store. Many are switching to a more chicken- filled diet than beef. Many are moving to prepared foods which are often cheaper than you can make at home. People are leaving nationally branded products in favor of private label items. They are also moving to shopping for groceries online. Online shopping allows shoppers to take advantage of the best prices from multiple stores to maximize their savings. Often having them delivered, which further helps them save on gas. Shoppers will continue to find ways to save on grocery shopping to try to stay as close as they can to their budgets while still feeding their family.”
Robert Paul Jones, Ph.D. – Associate Professor, Texas Tech University

 Tips for Saving Money on Groceries

1. Budget carefully: Creating a budget lets you know exactly how much you can afford to spend, which can prevent you from making impulse purchases while shopping. Always stick to your budget and try to make a shopping list before going to the store.
2. Use the right credit card: The best credit cards for groceries can save you 1.5% to 6% on supermarket purchases. That can definitely help take the sting out of inflated prices.
3. Take advantage of discounts: Grocery stores typically have sales on a regular basis. They also often provide coupons, either online, through an app or by mail. You should also join stores’ free loyalty programs to take advantage of exclusive member discounts.
4. Buy store-brand items: Store-brand items often taste very similar to name-brand groceries but cost a lot less. If you’re not picky about what brands you buy, you can save a ton each time you shop.
5. Look for clearance items: Your local grocery store may put items that are close to their expiration date on clearance, selling them for far less than the normal retail price. You’ll just need to eat these items quickly so they don’t spoil.
6. Buy in bulk: Consider shopping at warehouse stores, which sell groceries in bulk at steep discounts compared to buying the same number of items individually. These stores are most worthwhile for people with big families who go through a lot of groceries.

More From WalletHub

• States Where People Spend the Most on Groceries
• Best Credit Cards for Groceries
• Best Foodie Cities
• Best Cities for Vegans & Vegetarians
• Best States to Live In
• States With the Best & Worst Budgeters
• Changes in Inflation by City