There's a new low-cost grocery leader

GRAND RAPIDS, Mich. (WOOD) - Seven months ago, 24 Hour News 8 compared grocery prices at six West Michigan stores, and found Wal-Mart handily beat the competition.

Now, Target is the low-price leader.

Competition is tightening up. Retailers are fully aware of consumers' desire to save money, and they're responding.

In February, the price difference between the lowest- and highest-priced chain was at least 22 percent, but now, that difference is no more than 10 percent.

There seems to be a battle to be the low-cost leader.

In this price comparison, Target beat Wal-Mart by 3 percent and beat Meijer and Family Fare by 10 percent.

     See all the items compared store by store and price by price

"They are cheaper than the regular grocery stores," Target shopper Virginia Walton said.

Asked 24 Hour News 8: "You noticed that?"

Said Walton: "Definitely."

But Target doesn't sell fresh meat and produce in its West Michigan stores. That's not a problem for Target shopper Cheryl Reininger. She picks up meat and produce elsewhere. For everything else, it's Target.

"I think the prices are better here and I can get in and out quicker here than Meijer," she said.

But Meijer is not losing any popularity contests, at least in its home base of West Michigan. A Meijer spokesperson told 24 Hour News 8 it has cut prices on 19,000 items this year, and simplified its discounting. Shoppers will find three kinds of sales:

• "Price drops" which last about one month
• "Sales" which last one week
• "Everyday best price" -- not necessarily the best price in the market, but Meijer's lowest price, which means it won't go on sale.

It's a strategy that has won over shopper Dave Hinkle.

"Meijer's real good about their sale items," Hinkle said. "They're on a revolving basis every two or three weeks. The items we buy tend to go on sale."

Sales are what attract shoppers to Family Fare. The chain had the highest number of items on sale on the 24 Hour News 8 shopping list. Family Fare prices came in 10 percent lower than Target's prices.

Other customers don't want the hassle of sales. Terri Blessing chooses Wal-Mart for that reason. She is confident she's getting the best price, no matter what she buys.

Target had a few sale items, but that's not what made the difference.

Lipton tea, for example, was $1 cheaper at Target's regular price than everywhere else. Juice, rice, cereal and household supplies all were cheaper.

However, Wal-Mart was the price leader on milk at $1.78 a gallon.

Still, retailers have a tough job winning converts. Buying groceries can be such a tiring chore, you're more likely to shop based on habit, not a lower price here or there.

"Maybe it's a mind-set," Meijer shopper Danelle Leugs said. "Habit, yes. Meijer has what I want and I know where things are, so this is where I shop."

With persistent unemployment, that mind-set could be changing -- and the reason retailers are lowering prices.

Of course, the best way to save money is to make your own list. Keep a record of prices and do your own comparison.

And stick to your shopping list. Retailers count on sales and low prices on certain items to get you to pay more where you're least suspecting.

PRICE COMPARISON, NOVEMBER 2009

HOUSEHOLD GOODS

Five items

Target: 142.99
Meijer: 153.81 (10 percent higher than Wal-Mart, 7 percent higher than Target)
Walmart: 138.81

Notes: Did not include heated blanket (Meijer didn't carry Sunbeam but carried its own label, which was $25 cheaper), Kitchen Aide mixer (Wal-Mart's was $50 cheaper but one color and looked smaller), irons (Wal-Mart and Target carried Sunbeam that looked the same but had different names, the Wal-Mart one was $11 cheaper) and space heaters (each store carried different brands)

GROCERIES (not including meat/produce)

24 items

Target: $84.42
Family Fare: $94.53 (10 percent higher than Target)
Meijer: $93.74 (9 percent higher than Target)
Walmart: $87.31 (3 percent higher than Target)

Notes: Did not include Mylicon drops (Family Fare only carried large size; more than double the price), Maybelline mascara (Family Fare did not carry same item, but Target and Wal-Mart had same price, Meijer was 4 percent higher)

PRODUCE/MEAT

10 items

Family Fare: $31.61 (9 percent higher than Meijer,Wal-Mart)
Meijer: $28.82
Walmart: $28.72

Notes: Target doesn't carry fresh produce/meat. Only one Wal-Mart in the Grand Rapids metro area carries fresh meat/produce. Meijer had bigger selection.

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FEBRUARY '09 - NOVEMBER '09

Wal-Mart was the lowest then, now Target is the lowest

-- Family Fare was 22 percent higher then, now Family Fare was 9 to 10 percent higher
-- Meijer was 16 percent higher then, now Meijer is 9 percent higher
-- Target: 10 percent higher, now Walmart: 3 percent higher

Notes: Wal-Mart/Meijer about the same on meat and produce

Inside woodtv.com:

Price comparison by item, store (Excel spread sheet)