Shoppers have flocked to bargain stores like Dollar General in recent years. Part of the attraction is a perception that switching to lower-cost stores and own-brand goods can be a good way to save money. In some cases, that's true -- but not always.
In fact, Walmart cost less than Dollar General in our price comparison. We checked prices on a basket of common goods in their online stores. Walmart was cheaper overall, and beat Dollar General in 10 out of 12 of the items in our basket. Not only that, but Walmart also had a wider selection of goods and offered more opportunities to save by buying in bulk.
Dollar General vs. Walmart: Which is cheaper?
There are so many variables in comparing prices. Package sizes often aren't the same, you might not find identical brands in each store, and every household will have a different basket of regular goods. Plus, online prices don't necessarily reflect in store savings or the benefits of coupons or cash back apps.
All the same, tracking prices can save you money. Particularly if you look beyond the price tag and check the weight or volume of items too. Let's say one shop sells a 16 ounce bottle of orange juice for $2 and another sells a 14 ounce bottle for $1.90. In that scenario, the smaller bottle looks slightly cheaper, but it actually costs more per fluid ounce.
Here's how Walmart and Dollar General stack up in terms of prices:
| Item | Walmart | Dollar General | Best value |
|---|---|---|---|
| Canola oil (48 fl oz) | $3.98 | $5.00 | Walmart |
| Canned tuna (5 oz) | $1.00 | $1.15 | Walmart |
| Shredded sharp cheddar cheese (8 oz) | $2.22 | $2.75 | Walmart |
| Saltine crackers (16 oz) | $1.67 | $2.50 | Walmart |
| Frozen chicken breasts | $9.74 for 3 lbs ($3.35/lb) | $9.00 for 2 lbs ($4.50/lb) | Walmart |
| Frozen broccoli florets | $1.16 for 12 oz ($0.10/oz) | $1.50 for 10.8 oz ($0.14/oz) | Walmart |
| White bread (20 oz) | $3.42 | $2.80 | Dollar General |
| Penne pasta (16 oz) | $1.18 | $1.75 | Walmart |
| Tomato pasta sauce (24 oz) | $1.70 | $2.50 | Walmart |
| Lay's potato chips (8 oz) | $3.68 | $3.95 | Walmart |
| Crest Cavity Protection toothpaste | $2.12 for 5.7 oz ($0.37/oz) | $1.00 for 2.9 oz ($0.34/oz) | Dollar General |
| Frozen pizza | $4.18 for 26.6 oz pepperoni pizza ($0.16/oz) | $5.95 for 22.6 oz classic pizza ($0.26/oz) | Walmart |
| Total | $36.05 | $39.85 | Walmart |
Data source: DollarGeneral.com and Walmart.com
To simplify the comparison, we took the lowest cost item in each store. For example, Walmart sells a more expensive branded penne pasta. But if you want to save money, you'd probably opt for the own-label option. We also tried to compare like with like where possible. Walmart has a wider variety of toothpastes that you can buy in packets of three or even six, but we looked for matching brands and similar package sizes.
Small savings can multiply quickly
You might be looking at the table above and thinking, "Walmart was only $3.80 cheaper, what's all the fuss about?" It's true. But you also got more bang for your buck at Walmart. The toothpaste, broccoli, chicken, and pizza all came in bigger packages, so that $36.05 bought more food. Plus, that $3.80 is actually a savings of around 10%.
The Ascent research shows that the average American spent about $691 on food each month in 2021. In that context, a 10% savings could mean almost $70 more in your bank account each month -- or $840 a year. You'd save even more if you were able to build a two-stop shop into your routine and buy the items that cost least in each store.
Bottom line
If shopping in more than one store or laboriously comparing prices feels like too much hassle, there are lots of other ways to cut the cost of groceries. For example, you might shop with a list, and stack benefits from coupons, rewards credit cards, and cash back apps. I only buy big-ticket items like laundry detergent on discount, and I'm a big fan of bulk buying.
All the same, price comparisons can be powerful money-saving exercises. You don't have to do it for every item every time you shop. But try to get an idea of which products cost less in each store. That way, you won't automatically assume that Dollar General costs less because of its name.
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