Texas chain crushes Costco and Trader Joe's to claim America's top grocery store title
A Texas-based chain has once again been named America’s top grocery store, beating out major competitors including Amazon, Costco and Trader Joe's.
San Antonio–based H-E-B was ranked the No. 1 grocery retailer in the U.S. for the fifth time in nine years, according to Dunnhumby’s latest annual ranking of grocery stores.
The family-owned company, which was founded in 1905 and operates more than 440 stores, is "firmly entrenched as the top retailer due to its superior ability to deliver a combination of better savings, quality, experience, and assortment," the study found.
Massachusetts-based Market Basket ranked second, followed by Wisconsin-based Woodman’s in third.
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"For the first time, the leading three retailers in the United States are all regional chains," Dunnhumby noted.
Costco was ranked No. 4 on the list, followed by Aldi, WinCo Foods, Trader Joe’s, Amazon, Wegmans and ShopRite, rounding out the top 10.
Amazon, which topped the rankings in 2021 and 2022, slipped two spots this year, while Sam’s Club dropped six places.
The study evaluated 81 major U.S. grocery stores, combining financial performance with survey responses from more than 11,000 American shoppers.
Participants were asked about pricing, quality, convenience, operations and online ordering.
The rankings come as consumers face mounting financial pressure.
Shopper confidence declined last year amid concerns over rising prices, limited job opportunities and stagnant wages, according to Matt O'Grady, president of the Americas for Dunnhumby.
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"Consumers across all income levels are feeling the squeeze and making more price-conscious choices," O'Grady said in a statement. "In this environment, building trust with American shoppers has never been more critical."
Overall food prices were up 0.7% in December and 3.1% from a year ago, according to the December consumer price index (CPI).
The all-items CPI index showed inflation pushed prices 0.3% higher last month and 2.7% on an annual basis.
FOX Business' Eric Revell contributed to this report.