Walmart and Costco gain U.S. grocery share as Kroger, Albertsons lose ground

Traders Union
All News
Business & Wealth
Companies
Walmart and Costco gain grocery share

Highlights

Costco's share of U.S. retail food and beverage sales rose 0.5 percentage points to 8.4%, surpassing Kroger's 8.2%, while Albertsons fell to 4.5%.
Walmart remained the largest grocery retailer, increasing its share by 0.2 percentage points to 20.3%, as shoppers shift to value-oriented chains amid inflation.
Kroger initiated a $5 billion program for lower prices and operational efficiency, including workforce reductions, while Albertsons adjusts benefits to manage rising healthcare costs.

Market share shifts in food retail

As reported by Business Insider, citing Numerator, Costco has moved ahead of Kroger in dollar share of U.S. retail food and beverage sales, based on the latest 12-month estimates. The consumer analytics firm's data shows Costco's share rising to 8.4%, up 0.5 percentage points from a year earlier, while Kroger's share slips to 8.2% and Albertsons declines to 4.5%.

Walmart remains the biggest player in grocery spending and also adds to its lead, gaining 0.2 percentage points to reach 20.3% of sales in the period. The figures point to a continuing shift toward retailers that emphasize lower prices as consumers face higher costs for gas, housing and insurance.

The competitive changes unfold as shoppers absorb fresh inflation pressures linked to last year's trade war and this year's conflict with Iran. Costco has kept prices relatively steady this year, though its leadership says it is closely monitoring cost pressures tied to transport and diesel expenses.

Cost discipline drives competitive response

A recent Deutsche Bank note says Walmart is preparing for cost impacts that could outweigh the benefit it received from tariff refunds this year. Walmart had initially planned to use some of those refunds to support price cuts, and Deutsche Bank says that when Walmart raises prices, competitors often follow while Walmart usually remains the cheaper option.

Traditional grocers are responding with their own cost and pricing measures. Kroger this year brings in former Walmart U.S. executive Greg Foran and is pursuing a $5 billion effort centered on lower prices and tighter operations, including corporate workforce cuts over the next few years and the end of supplier contracts that do not deliver strong enough terms.

Albertsons also says it is making significant changes to its employee benefits package as it manages rising healthcare costs. Across the sector, the latest moves suggest that winning share increasingly depends on sharper value positioning and stricter control of operating expenses.

In our previous coverage of Deutsche Bank’s bullish call on Walmart, we explained how persistent inflation is reinforcing the retailer’s value proposition and supporting further market-share gains. We also noted that Walmart’s push into higher-margin businesses, automation, and digital tools such as its AI shopping assistant can lift baskets and help improve margins alongside sales growth.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.