You are here
Dollar General’s overall basket was found to be the least expensive in Kantar Retail’s fifth annual opening price point (OPP) survey, which seeks to determine how select retailers meet the grocery and consumables needs of shoppers looking for the lowest absolute shelf prices to fulfill their basket requirements.
Dollar General edged Walmart Supercenter’s basket by $1.28, which equated to a basket priced 4.8 percent higher than Dollar General’s, which Kantar said represents a widening of the gap from last year, when the difference between the two retailers’ total baskets was $0.66. Dollar General’s overall leadership over Walmart was driven primarily by the nonedible sub-basket and to a lesser extent, the edible sub-basket. Notably, a higher proportion of Dollar General’s overall basket was private label – 68 percent versus 58 percent of Walmart’s. Meantime, Aldi’s basket led overall private label penetration at 80 percent.
New to the study this year, Save-A-Lot had the cheapest edible sub-basket. Dollar General took the lead on the nonedible sub-basket. Walmart had the cheapest HBA sub-basket. Conversely, Aldi had the most expensive overall basket, coming in at nearly 40 percent more expensive than Dollar General’s overall basket. Aldi’s position was driven primarily by its relatively high OPP prices in the nonedible and HBA sub-baskets. Specifically, Aldi’s HBA sub-basket was more than three times more expensive than Walmart’s.
All data was collected by Kantar Retail in southeastern Massachusetts in October 2015. In a slight methodology change to previous years, the market research firm swapped out Target in favor of Save-A-Lot in light of the latter’s value-oriented offer and large geographic footprint. Each retailer was assessed on the lowest price point available to the shopper in that category, regardless of brand or pack size (excluding trial sizes). The goal was to mimic the budget-strapped shopper’s need to minimally meet her purchase requirements across categories.
Promotional pricing had little impact on the OPP leaders across sub-baskets. Dollar General and Walmart, which had the least and second least expensive overall baskets, respectively, each had only one item on promotion. Meanwhile, Stop & Shop, which had the most items on promotion (three), came in third overall. Save-A-Lot and Aldi each had two items on promotion, but came in fourth and sixth, respectively.