A new industry report has reaffirmed Walmart’s dominance in U.S. grocery spending, showing that the retail giant still accounts for over one-fifth of all grocery dollars spent nationwide. However, the report also revealed an interesting shift in the competitive landscape: Kroger has edged ahead of Costco, now holding 8.9% of market share compared to Costco’s 8.5%.
Walmart’s supremacy is attributed to its scale, supply chain muscle, and its hybrid strength across both physical and digital grocery shopping. The company has invested heavily in price leadership and omnichannel services, including grocery delivery and curbside pickup, which continue to win over consumers.
Meanwhile, Kroger’s strong performance demonstrates the power of targeted loyalty programmes and digital engagement. The retailer’s ability to leverage shopper data to personalise offers has strengthened its competitive advantage. Combined with investments in private label and online fulfilment, Kroger is solidifying its position as the leading traditional supermarket operator in the U.S.
Costco, while still a formidable player, faces natural limitations due to its membership model and smaller store footprint. Nonetheless, it remains highly profitable and continues to attract customers with bulk buying and quality products.
The reshuffling among top players illustrates the dynamism of the U.S. food retail market, where consumer behaviour is constantly evolving in response to economic pressures, health trends, and the rise of digital shopping.