Kroger and Albertsons lose market share

Traditional grocery chains are losing ground to discounters and e-commerce giants, according to new market data.

Big retailers gain share while supermarket giants slip

Numerator data shows that Costco, Amazon, and Walmart each saw their share of grocery sales increase over the past year, while major supermarket companies posted declines.

Amazon and Whole Foods Market combined grew their grocery market share by just over half of a percentage point for the 12 months ending June 30 compared with the same period last year — the largest increase among 15 food retailers tracked by Numerator. Costco saw the second-largest year-over-year bump, followed by Walmart.

H-E-B, Publix and Target recorded flat growth. Meanwhile, Kroger, Albertsons and Ahold Delhaize USA all saw their grocery market share contract by a fraction of a percentage point.

Market trends over two years

Numerator’s findings show that traditional grocers’ market share has been slipping for more than just a year. On a two-year stack, Costco and Amazon/Whole Foods recorded the largest grocery market shares.

Publix, Aldi, Dollar General and Trader Joe’s recorded a fraction of a percentage point increase, while Kroger, Albertsons, ADUSA, Target, H-E-B and Wakefern Food Corp. all saw their grocery market share contract over that period.

Walmart, which commands about a fifth of the U.S. grocery market share — the largest among the 15 companies analyzed by Numerator — saw its share remain the same as two years ago, reinforcing its stubborn grocery dominance.

Numerator also tracked sales growth for consumer spending on CPGs, which includes grocery, baby, health and beauty, household items and pet supplies, over the same period and found a similar pattern: Costco and Amazon/Whole Foods recorded the strongest share gains while Kroger, Albertsons and ADUSA all posted declines.

In an emailed press release, Numerator noted that the findings illustrate how Amazon is making headway on becoming the second-largest CPG retailer in the United States. This follows a bevy of efforts by Amazon in grocery, from expanding perishable delivery options to entering the B2B grocery space.

While Kroger was among the major supermarket operators to see both its CPG and grocery market shares contract, Numerator noted that its proposal to buy Giant Eagle could reshape its standing. If approved, the acquisition would increase Kroger’s food & beverage market share from 8.3% to 8.7%, moving it ahead of Costco to become the country’s second-largest grocery retailer by share, according to the announcement.

The shift toward discounters has been evident for decades. [1]One Grenada grocery store celebrates 50 years, proving that long-term community ties can survive changing retail trends.