8 Ways to Cut Your Grocery Bill

"Ask the staff at your supermarket what time they mark items down," says Tawra Kellam, founder of frugal living web site Living on a Dime. Stores routinely discount dairy, baked goods, produce and meat by 50% or more as these items approach their sell-by date or become less attractive (think bruised apples or crushed bread). Make no mistake: These items are perfectly safe to eat, even several days after purchase. "You're not buying old food," she says. "There's a big difference between the sell-by date — which is what the stores are required to go by — and the expiration date."

It's the best day to buy groceries. Armed with the fresh batch of coupons from your Sunday newspaper and the weekly sales circular, you can maximize your savings. Consumers who combined the two reported saving an average $678 annually, according to a recent Consumer Reports survey.

Supermarkets aren't the only place to go for groceries. Here's where to look:

Drugstores and pharmacies for milk, over-the-counter medications and personal-care items. "At supermarkets, there's no coupons for milk, and there are rarely sales," says Gault. "Drugstores are hoping you'll grab some milk, and on your way to the register, some higher-priced stuff, too." At Walgreens in San Francisco, a half-gallon of skim milk is $2.49; at Safeway, it's $2.99.

Superstores for snacks, cereals and cleaning supplies. The added bonus: Target, Wal-Mart and Kmart are likely to accept competitor's coupons and match sale prices.

Online Amazon.com is gaining traction as a grocer, thanks to its free shipping policy and discount prices on bulk quantities, says Lempert. At the Hy-Vee grocery chain, a box of 100-calorie Oreo packs is $2.89. At Amazon.com, a bulk pack of six is $16.25 — a 6% discount.

Warehouse clubs for alcohol, prescription medications and pantry staples. You can easily recoup the annual membership fee, says Freeman. (For a list of the best and worst buys at warehouse clubs, click here.)

Discount grocers for anything. Aldi and Save-A-Lot primarily sell products bearing their own label, instead of brand names. There's less selection, says Kellam, but prices are usually at least 20% lower than at the supermarket.

Surplus stores for dry goods. Chains like Amelia's, SharpShopper and Grocery Outlet cut prices by up to 70% on damaged, near-expired and expired food obtained directly from the manufacturer. The deals are excellent, but you'll have to be extremely cautious, says Lempert. "I am not a big proponent of going past the expiration date," he says. Check for quality before you buy.

Buying the bigger size isn't always the best deal. The Federal Trade Commission found that bigger sizes of tuna fish, peanut butter, ketchup, coffee and frozen orange juice were often pricier per unit than smaller counterparts. Crunch the numbers before you buy.

Take your Sunday morning coupon clipping one step further. Join your supermarket's loyalty club because many offer bonus sales. Grocery chain Fry's, for example, automatically doubles the value of its members' manufacturers' coupons. Also check online coupon sites — because technology limits you to one print-out coupon per computer (as opposed to buying five weekend papers) manufacturers are often more generous with the coupon amounts. Try The Grocery Game, Coupons.com and Red Plum.