Mall prices are now about 20% higher compared to before the pandemic due to ongoing inflation.

Wish to spend like it was February 2020? Consider changing your shopping spots.

In January, ALDI, the budget grocery chain, released findings suggesting shoppers can save up to 36% on their grocery bills by choosing ALDI over other supermarkets. This analysis looked at prices in five major metropolitan areas.

Though the report may benefit ALDI, it reflects a common concern among shoppers in 2025: Many are searching for ways to counteract years of inflation.

“It really comes down to where you shop,” said Nicole Prom, a mother of three from Waconia, Minnesota. “If someone has been shopping at a high-priced store like Whole Foods and transitions to a cheaper store like Aldi, they could definitely manage to beat inflation.”

To counter inflation effectively in 2025, consumers need to find ways to reduce their spending by about 22.5%. This figure represents the cumulative inflation increase in consumer prices since February 2020, according to the personal finance website Bankrate.

Retailers have solid evidence that customers are actively trying to reduce their expenses. Discount stores like Costco, Walmart, and T.J. Maxx are seeing sales increase, whereas high-end retailers like Macy’s and Kohl’s have reported declines in sales. A 2024 survey from KPMG revealed that 65% of consumers intend to focus more on discount shopping.

“What you’re describing is essentially ‘downscaling,’” explained Jeff Galak, a marketing associate professor at Carnegie Mellon University’s Tepper School of Business. “During tough economic times, consumers tend to migrate toward discount stores.”

Retailers Respond by Reducing Prices

Recognizing a shift in consumer behavior, retailers began lowering their prices in 2024. This trend includes stores like Aldi, Target, Costco, and Ikea, all of which focus on providing value.

Prom, the Minnesota mother, has been tracking grocery prices over time at three value-oriented chains: Walmart, Aldi, and Target. She shares her discoveries on a website called Easy Family Budgeting.

In late January, Prom compared the online prices at Aldi and Walmart with those at two higher-end supermarkets: Whole Foods and a local independent store. She discovered their prices were 30% to 40% higher.

“I suspected it was more expensive,” she stated, “but I was shocked by how significant the difference was.”

Research indicates that consumers are becoming cautious not just about rising prices but also about “shrinkflation,” a practice where less product is offered in a package to avoid actual price hikes.

Shifts in Shopping Habits

Indeed, some consumers are switching their preferred stores. ALDI reported gaining 19 million new shoppers within the past year.

“That number, 19 million, is massive,” stated Phil Lempert, a grocery industry analyst. “A significant portion of this growth comes from Generation Z and millennials who prioritize value and quality.”

Many shoppers are also developing a rotation system: picking some items at one store and others at another to find the lowest prices. This shift means consumers are spending less time at each location.

Additionally, shoppers are increasingly drawn to “supercenters,” like Walmart and Costco, searching for affordable store brands and bulk purchasing options.

Metin Çakır, a professor and director of graduate studies in applied economics at the University of Minnesota, is investigating this trend, although he currently lacks concrete data to support his findings.

Çakır points out another consumer trend he labels “cheapflation.” The surge in the popularity of budget items is driving up their prices. Interestingly, this means that lower-priced products are experiencing faster price increases compared to their more expensive counterparts.

Therefore, a shopper switching stores might find less savings than they did a year or two ago.

However, switching stores is not the only approach to combat inflation. Here are additional strategies.

Opt for Store Brands

Over time, store brands have transformed from subpar products to private-label options that compete with well-known brands in terms of quality and affordability.

In 2023, private label items represented 20.7% of all grocery sales based on unit sales, a record achievement.

“If you switch to store brands, you can save between 20% to 30%,” said Lempert, noting that the quality is consistently high. “There’s no downside.”

Compare Prices by Unit

Unit pricing tells consumers how much a product costs per ounce, pound, or liter. Many grocery stores display unit prices on their shelves.

Evaluating unit prices is an effective method to combat shrinkflation and save money.

“Paying attention to unit prices can be crucial,” remarked Nailya Ordabayeva, Kelli Questrom Associate Professor of Marketing at Boston University’s Questrom School of Business.

Store Rotation Strategy

Consumers are becoming more deliberate about where they purchase different items. To save money, consider shopping at multiple stores. One store might excel in private-label cereal prices, while another could offer great deals on frozen meals. A third could be the go-to for paper goods.

“This mix-and-match strategy can effectively counter inflation in an environment of fluctuating prices,” suggested Kimberly Palmer, a personal finance expert at NerdWallet.

Embrace Couponing

Using coupons remains a time-tested method for saving money. According to Experian, individuals who dedicate just 10 minutes a week to couponing can save around $7 on average.

There are many free coupon apps available.

“Steer clear of paying for coupons,” Lempert advised.

However, keep in mind that couponing requires effort. Successful couponers “put significant effort into finding deals,” noted Galak from Carnegie Mellon.

Utilize Loyalty Programs

Most retail chains offer loyalty programs. Signing up can lead to valuable savings, especially when trying out a new store, according to Palmer.

Stick to a Shopping List

Create a shopping list before heading out, Lempert suggested. Check it against what you already have at home.

Having a shopping list helps you avoid impulse purchases and prevents buying duplicate items.