Aldi is shockingly cheaper than Dollar General

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Aldi

Business Insider/Hayley Peterson

Aldi.

Dollar General is known for its low prices.

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The discount chain claims that it's 20% cheaper than major grocery stores and 40% cheaper than convenience stores.

But there's at least one retailer that crushes Dollar General when it comes to the price war: Aldi.

The German grocery chain's prices are 21% cheaper than Dollar General's, according to a recent price check by Deutsche Bank.

Analysts compared the prices of 40 similar items at Aldi, Walmart, and Dollar General at stores in Northern New Jersey.

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The Aldi bill was $95.73, Walmart's was $112.97, and Dollar General's was $115.87.

Dollar General price check

Deutsche Bank

Aldi's prices also beat Save-A-Lot's and Kroger's. In another price check in Nashville, Deutsche Bank found that Aldi was 10% cheaper than Save-A-Lot and 22% cheaper than Kroger.

Dollar General, with about 12,500 locations, is a much bigger chain than Aldi, which has just 1,500 stores in the US.

Despite its relative size, Aldi poses a serious threat to dollar stores and Walmart, according to Deutsche Bank analysts. Aldi is planning to open another 500 stores over the next two years.

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"All retailers need to treat Aldi (and at a later date Lidl) as a meaningful threat - and to be dismissive will likely prove to be a tactical/strategic error," the analysts wrote in a research note.