Grocery wars are here: Walmart and Costco keep gaining ground
Costco passes Kroger in sales share
Consumer analytics firm Numerator reported that Costco’s share of US retail food and beverage sales has risen steadily over the past two years. Its share now exceeds Kroger’s. Kroger and Albertsons both lost ground during that period, while Walmart, already the largest retailer by grocery spending, increased its share by 0.2 percentage points to 20.3%.
Inflation pressures shape competition
The changing market comes as US shoppers face fresh inflation increases linked to last year’s trade war and this year’s conflict with Iran. Groceries have not yet been significantly affected by higher diesel and transportation costs. However, a recent Deutsche Bank note said Walmart is preparing for an impact that would exceed the benefit of tariff refunds the company received this year.
Retailers focus on lower prices
Walmart had initially planned to use some tariff refunds to fund price cuts. Traditional grocers are also taking steps to compete as Walmart and Costco gain ground.
Key points
- Costco overtook Kroger in its share of US retail food and beverage sales.
- Walmart gained 0.2 percentage points, reaching 20.3% of sales.
- Kroger and Albertsons have lost share over the past two years.
- Grocers are emphasizing lower prices and operational changes to compete.