Aldi vs. Dollar Tree: 2 Different Paths to Bigger Savings on Household Essentials
If you’re the type of shopper who likes to stick to one store for your groceries and household essentials, you may sometimes wonder if you’ve chosen the right one. For instance, Aldi and Dollar Tree are both known for their budget-friendly products.
Still, if you’re going to shell out hundreds of dollars per month for the essentials, you’ll want to know where you can get the most for your dough.
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Here’s a breakdown from consumer and finance pros about whether Dollar Tree or Aldi is cheaper for those monthly household necessities.
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A Clear Winner Depends on What Category You Are Looking At
The experts seemed to agree: On a household balance sheet, this comparison splits cleanly by category.
“Dollar Tree is the better source for household sundries and cleaning supplies, where the flat price point genuinely beats a grocery chain's per-unit pricing,” said Cody Schuiteboer, president and CEO of Best Interest Financial. However, he noted that Aldi takes the prize for groceries, as pantry basics and perishables in particular are better aligned with the store's model, which centers on private-label volume pricing rather than a flat price ceiling.
Ali Zane, personal finance expert and CEO of IMAX Credit Repair Firm, noted that, “Since groceries are the larger recurring monthly cost for most households, Aldi tends to win the overall monthly essentials budget even if Dollar Tree wins on individual sundries.”
What's 'Essential' Is Essential
“The comparison depends heavily on what ‘essentials’ means,” said Kevin Shahnazari, CEO of Savvo Technology Inc. He went on to largely agree with Schuiteboer's stance on why Dollar Tree is the favorable option for "small household items, cleaning supplies, paper goods [and] basic toiletries," while Aldi's model is better suited to less expensive groceries.
For a typical monthly household budget, groceries make up a far larger share of spending than household sundries, so Aldi usually comes out ahead on the total monthly bill even though Dollar Tree wins more individual price comparisons, Shahnazari added.
The Bottom Line
According to Melanie Musson, a finance expert with Quote.com, the good thing is that you probably won’t need to choose between Aldi and Dollar Tree. You can find the products that work best for you and go to the retailer that carries them.
“I would buy my meals at Aldi and my small household basics at Dollar Tree, because the smartest budget is built by matching the store to the product,” said Devin Hornick, co-founder of KORE1. “While Dollar Tree prices might feel cheap, I would still price per ounce. An item that costs $1.25, but lasts half as long as an alternative, isn't always a better deal.”
Editor’s note: Prices and availability are subject to change.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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