Why are groceries so expensive in California?
The average American household spends $270.21 a week on groceries, or, about $1,080 a month, according to a study by HelpAdvisor, a health and personal finance website.
California residents spend the most in the nation on groceries, shelling out $297.72 per week on average, the study found. That’s $27.51 more then a standard U.S. household.
“We’re a high cost-of-living state, from housing to gas prices to labor costs,” said Derek Stimel, associate economics professor at University of California, Davis. “That is unlikely to change anytime soon.”
“When prices in general, and cost of living in general in the state rise that pushes up the cost of pretty much everything in the state along with it,” he told The Fresno Bee via phone.
In Fresno, the cost of living is 21% lower than the state average and 9% higher than the national average, according to the Cost of Living Index published by the Council for Community and Economic Research.
Food prices in Fresno are 8% lower than the state average, the Cost of Living Index indicated.
Why are food prices so high in California?
Food prices have slowly been increasing Stimel said, “but they really spiked in 2022.”
The cost of food that year was “probably the highest in at least 30 years,” he said.
According to Stimel, a lot of factors can affect an increase in food prices — including having an oversupply or shortage of an item as well as international conflicts such as wars.
If China produces too much pork than consumers need, he explained, “That would cause worldwide pork prices to come down.”
Egg prices were higher than normal in 2022 because an outbreak of avian influenza affected the number of poultry laying eggs, Stimel said.
Although food prices have started to decrease, they remain high in California, which has one of the highest minimum wages in the nation.
Although the minimum wage in California is $16 per hour, fast food workers in the state make a minimum of $20 an hour.
“In California, labor costs are quite high.,” Stimel said. “In terms of states, we’re the second highest minimum wage behind Washington.
Which Fresno grocery stores have the best prices?
The Fresno Bee visited five different local grocery stores — Grocery Outlet, Save Mart, Target, Trader Joe’s and Vons — and priced 10 different items to discover where the best deals are.
All total sales were calculated before sales tax.
The city of Fresno’s sales tax is 8.35%.
How much do groceries cost at Save Mart, FoodMaxx?
Founded and headquartered in Modesto, Save Mart Supermarkets owns and operates 194 stores in California and Nevada under the Save Mart, Lucky, and FoodMaxx brands.
There are 19 Save Mart stores and six FoodMaxx stores in Fresno.
Prices at local Save Mart stores were significantly more expensive than those at general retailers such as Target.
Save Mart’’s rewards program is different from the other supermarkets because members receive rewards depending on how much money they spend as opposed to other grocery store rewards programs. The Sacramento Bee previously reported.
Members earn a point for every $1 they spend on “qualifying purchases.” Once enough points have stacked up, they can be converted into money off.
Members don’t earn points from a list of products that include, prescriptions, dairy, tobacco alcohol, lottery tickets and more.
It cost a total of $57.26 to buy the following 10 items at Save Mart, 659 E. Nees Ave. in Fresno, on Aug. 19.
One gallon of whole milk: $4.49
Six bananas: $1.84
Oroweat whole wheat bread: $5.99 for 24 ounces
Kellogg’s Froot Loops cereal: $4.99 for 8.9 ounces
One dozen large white eggs: $6.49
80% lean ground beef: $5.99 per pound
Tide laundry detergent: $14.99 for 84 fluid ounces
Chobani vanilla yogurt: $5.99 for 32 ounces
Organic carrots: $2.99 for 1 pound
Tree Top apple juice: $3.50 for 64 fluid ounces
Trader Joe’s
Trader Joe’s, which is headquartered in Monrovia, has 571 stores across the United States. There is a total of two Trader Joe’s locations in Fresno and Clovis.
Trader Joe’s doesn’t typically carry the brands that are available at other grocery stores, offering its own store brands instead.
Although prices for popular grocery items are cheaper at Trader Joe’s compared to Save Mart, Vons and Target, the store often offers smaller sizes than its competitors.
“We have low prices, every day,” the supermarket chain said on its website. “No coupons. No membership cards. No discounts.”
Trader Joe’s doesn’t sell products online, the website said. “We do not offer curbside pickup or delivery, and we don’t work with third party delivery services like Instacart or Dumplin.”
Substituting store brands for bigger name items, a 10-item grocery list cost $43.45 at Trader Joe’s, North Friant Road in Fresno, on Aug. 25. Here’s how that broke down.
One gallon of whole organic milk: $6.79
Six bananas $1.74 0.29 cents per banana
Whole wheat sliced bread: $2.49 for 22 ounces
Tiny Fruity Cuties cereal: $3.99 for 16 ounces
One dozen large white eggs: $4.49
Ground beef patties: $6.49
Free and Clear liquid laundry detergent: $5.99 for 50 liquid ounces
Trader Joe’s Greek Yogurt Vanilla bean: $5.49 for 32 ounces
Organic carrots: $1.99 for 2 pounds
Organic apple juice: $3.99 for 64 fluid ounces
Grocery Outlet
Advertised as a “high-growth, extreme value retailer,” Grocery Outlet has more than 400 stores across the nation and more than 1.5 million shoppers hitting the aisles each week.
There are eight Grocery Outlet stores in the Fresno area.
While Grocery Outlet may not carry certain brands, the store offers some great deals on groceries.
Grocery Outlet offers a loyalty program as well as an app where customers can see special offers and promotions according to the stores website.
At Grocery Outlet, 3566 West Shaw Ave. in Fresno, 10 grocery items cost a total of $43.89 on Aug. 24.
These were the prices for individual items:
One gallon of whole milk: $2.49
Six bananas: $1.18, 59 cents per pound
Oroweat whole wheat bread: $3.99 for 22 ounces
Kellogg’s Froot Loops $5.49 for 16.6 ounces
One dozen large white eggs: $3.79
Ground beef patties $6.49
Tide laundry detergent: $11.99 for 92 fluid ounces
Chobani strawberry yogurt: $4.99 for 32 ounces
Organic carrots: $1.99 for 2 pounds
Tropicana apple juice: $1.49 for 10 fluid ounces
Target
Target is one of the nation’s largest retail chains with stores in all 50 states, according to its website. That includes eight Target stores in the Fresno area.
Target has competitive prices on most grocery staples.
The chain offers a reward system called Target Circle.
“When you become a Target Circle member for free, you’ll get access to deals automatically applied at checkout,” the website said. Customers can also earn Target Circle Rewards, save with personalized deals, redeem free trials and link to other rewards programs.
It cost a total of $47.11 to purchase 10 items at Target, 7600 N. Blackstone Ave. in Fresno, on Aug. 19.
Here’s how that broke down:
One gallon of whole milk: $4.59
Six bananas: $1.50
Oroweat whole wheat bread: $4.49 for 24 ounces
Kellogg’s Froot Loops cereal: $4.29 for 8.9 ounces
One dozen large white eggs: $2.99
Ground beef: $6.49 per pound
Tide laundry detergent: $12.99 for $84 fluid ounces
Chobani vanilla yogurt: $5.59 32 oz
Carrots: 99 cents for 1 pound
Tree Top apple juice: $3.19 for 64 ounces
Vons
Vons, a supermarket chain owned by Albertsons, has 191 locations most of them Southern California and the Las Vegas Valley.
It has four Fresno locations.
It cost $18.88 more to complete The Bee’s grocery list at Vons, compared to Target.
Vons’ loyalty program, Vons for U, offers members “weekly personalized deals on groceries, a welcome offer, annual birthday treat, free item every month and more,” its website said. “Members can earn points on all eligible purchases and use points towards free products, discounts on gas, and cash off. “
At Vons, 8949 North Cedar Avenue in Fresno, 10 grocery items for non-members cost $65.99 in total on Aug. 25 while the same items for members cost $59.70.
Here’s how that broke down:
One gallon of whole milk: $4.99
Six bananas: $1.58, 0.79 cents per pound
Oroweat whole wheat bread: $5.99 for 24 ounces ($4.99 for members)
Kellogg’s Froot Loops cereal: $6.79 for 8.9 ounces ($5.79 for members)
One dozen large white eggs: $4.89
Ground beef: $9.99 per pound
Tide laundry detergent: $15.99 for 84 fluid ounces ($13.99 for members)
Chobani vanilla yogurt: $6.99 for 32 ounces
Organic carrots: $3.49 for 2 pounds
Tree Top apple juice: $5.29 for 64 ounces
What’s the best way to save money while grocery shopping?
A lot of factors come into play when choosing the best grocery store prices, location and quality of the food. While some stores are less expensive others have a better brand selection and higher quality products.
Here are a few tips that might help you on your next trip to the supermarket, courtesy of Stimel:
Be aware of current grocery store sales and promotions
Sign up for loyalty programs
Have a list and stick to it
Look up prices of items online ahead of time
Check for sales and coupons
