Comparing Prices on Grocery Items - Dollarama vs. Food Basics

According to the Globe & Mail, Canadian food prices climbed by 4.3% during the 12-month period ending in September 2011. This outpaced the average growth in salary by more than 1%, meaning that most Canadian households are spending a larger percentage of their income on groceries.

For some items, such as meat, dairy and fresh produce, a visit to the grocery store is unavoidable. But there are a number of typical grocery items can be purchased from a dollar store, significantly lightening the load on the grocery bill.

For instance, you can get a loaf of bread for a dollar – less than half of what you would pay at most grocery stores. Big savings can also be found on items like Goldfish crackers, Kraft Dinner and products used for seasoning, like salt and dried herbs.

Bear in mind that while grocery stores sell most things in units, dollar stores sell many things in multiples. For example, a box of eight Knorr stock cubes goes for $2.29 in my local grocery store. At the dollar store in the same plaza, I can get four of boxes of the identical product for a dollar. What this means is that on four boxes of the stock cubes, I can save a total of $8.16 by going to the dollar store.

The dollar store is not the most economical choice for all grocery items. Some bottled items like vegetable oil and vinegar are actually cheaper at the grocery store. Other items, like Primo spaghetti sauce, are generally cheaper at the dollar store, but could be better deals at the grocery store if they’re on sale and/or you have coupons.

The tables below give a general idea of whether items will be better value at a grocery store or a dollar store.

Usually good value at the dollar store:

Usually good value at the grocery store:

Check grocery store flyer before buying at the dollar store:

Source: Dollarama (Scarborough, ON) – prices may vary by location
Source: Food Basics (Scarborough, ON) – prices may vary by location
*Grocery store price adjusted for quantity where appropriate

Most of us are really good at shopping around for good deals on high-price items like cars and furniture, and it is worth our while to do the same grocery purchases. Many Canadian families spend well in excess of $5000 per year on their grocery needs (and we haven’t even gotten into household cleaning products here). With some careful planning and some paging through those weekly flyers that many of us just throw away, that amount could drop substantially.

So whether you dream of more cash for a long weekend away, a pair of boots that you really, really like, or simply something to add to your savings account, visit your dollar store. Your grocery budget will thank you.