Dive Brief:
- 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, according to research the firm shared with Grocery Dive.
- Costco saw the second-largest year-over-year bump, followed by Walmart. Meanwhile, H-E-B, Publix and Target recorded flat growth.
- Kroger, Albertsons and Ahold Delhaize USA all saw their grocery market share contract by a fraction of a percentage point, underscoring the difficulty that major traditional supermarket operators face in keeping shoppers spending with them.
Dive Insight:
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.
Amazon/Whole Foods and Costco made sizable market share gains
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 underscore 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,” Numerator said in the announcement.
