The Dominance of Retail Giants and Regional Favorites
For decades, a handful of national chains have commanded a significant portion of the grocery market. These giants, through a combination of scale, variety, and accessibility, have become ingrained in the American shopping experience. However, regional players maintain strongholds by catering to local tastes and preferences.
Walmart and Kroger: Market Leaders
Recent surveys consistently place Walmart at the top for consumer consideration, particularly for value-focused shoppers. Its expansive network of supercenters offers a one-stop-shop experience, combining groceries with general merchandise. Meanwhile, Kroger operates with significant regional dominance, receiving around 16% of total U.S. grocery visits nationwide as of 2025, with an even stronger presence in certain states like West Virginia and Kentucky. Kroger's strength lies in its family of banner names, which allows for a varied approach to different markets.
The Rise of Discount and Specialty Grocers
Inflationary pressures in recent years have propelled discount grocers like Aldi and Lidl into the spotlight. Shoppers are increasingly seeking lower prices, leading to substantial foot traffic growth for these retailers. Aldi, in particular, has seen massive expansion, adding over 100 new locations in 2024. Similarly, specialty grocers like Trader Joe's attract a loyal following with their unique and curated product selections. The emphasis on private-label brands by these stores is another key factor in their appeal to budget-conscious consumers.
Wholesale Clubs: Bulk Buying Power
For many Americans, particularly families and younger shoppers, wholesale clubs like Costco and Sam's Club are a primary source for groceries. These membership-based stores offer bulk quantities of products at competitive prices. Young millennials and Gen Z are more likely to do their primary grocery shopping at Costco compared to older generations. The appeal lies in the perception of high value and quality, along with the convenience of stocking up on essentials.
The Expansion of Online and Omnichannel Shopping
The COVID-19 pandemic significantly accelerated the adoption of online grocery shopping, a trend that has continued to evolve. Today, an omnichannel approach, where shoppers combine online and in-store purchases, is common, with over 90% of shoppers participating in both.
Leading online platforms include:
- Instacart: This third-party service partners with hundreds of retailers across North America, allowing users to order from their favorite local stores for delivery or pickup.
- Amazon Fresh: Integrated with the larger Amazon ecosystem, this service offers same-day delivery to Prime members in many areas.
- Walmart+: Walmart's membership program includes free grocery delivery and is a major player in the online space, leveraging its extensive brick-and-mortar footprint.
- Shipt: Owned by Target, Shipt focuses on delivery from various retail partners, including Target and Costco.
Comparison of Grocery Shopping Venues
| Venue Type | Key Features | Primary Appeal | Considerations | Top Examples |
|---|---|---|---|---|
| Supermarkets & Superstores | Wide variety of products, departments (bakery, deli, etc.), both national and private brands. | One-stop convenience, brand selection, and consistent quality. | Prices can be higher than discount stores; can be time-consuming. | Walmart, Kroger (and its banners), Target |
| Discount Grocers | Focus on low prices, simpler store layouts, heavy reliance on private-label goods. | Value for money, affordability, and efficient shopping experience. | Less brand variety, limited selection, and potentially lower-quality produce (varies). | Aldi, Lidl |
| Wholesale Clubs | Bulk purchasing, membership-based, often includes non-grocery items. | Low per-unit prices, quality products, and samples. | Membership fees, potential for over-buying, large packages aren't always needed. | Costco, Sam's Club |
| Online/Delivery | Order via app or website for delivery or curbside pickup. | Ultimate convenience, time-saving, and delivery to your door. | Potential for higher prices, delivery fees, and risk of poor substitutions. | Instacart, Amazon Fresh, Walmart+ |
| Specialty Stores | Curated selection of unique, high-quality, and often organic products. | Unique items, high product quality, and positive shopping experience. | Higher prices and limited selection of conventional items. | Trader Joe's, Whole Foods Market |
Conclusion: A Diverse and Evolving Landscape
The question of where Americans get their groceries no longer has a single, simple answer. It is shaped by a complex interplay of personal priorities, from cost and convenience to quality and loyalty. While powerhouses like Walmart and Kroger maintain their traditional dominance, the growth of discount grocers like Aldi and the accelerated shift towards online and omnichannel shopping have fundamentally reshaped the landscape. As inflation continues to influence consumer behavior, the focus on value remains strong, but factors like technology and convenience are driving consistent innovation across the industry. The modern American grocery shopper is a savvy, adaptable consumer who is no longer confined to a single store or shopping method.
The American Grocery Store: A Historical Context
The modern supermarket experience is a product of over a century of evolution. From the first self-service Piggly Wiggly in 1916 to the rise of massive chain stores and, later, online delivery, American grocery shopping has always adapted to consumer needs. The emphasis has shifted from simply obtaining goods to optimizing for value, convenience, and a wider selection of products. Today's retail environment, with its multiple channels and competitors, is the culmination of this long history of innovation and consumer-driven change.
Visit the Business Insider article to learn more about the history of supermarkets.
Factors Influencing Where Americans Get Their Groceries
Beyond the retailers themselves, several other factors influence consumer choices. Income level, presence of children, and location play significant roles. For example, higher-income households and those with young children are more likely to engage in online grocery shopping. Conversely, lower and moderate-income shoppers might prioritize the value offered by discount stores. Regional preferences also play a major part; for instance, Publix is a top choice in the Southeast, while Costco holds strong appeal in the West. Ultimately, the decision is a multifaceted one, combining economic considerations with lifestyle and accessibility preferences.
A Note on Private Label Brands
As shoppers look to save money, the popularity of private-label brands (store brands) has skyrocketed. In 2024, private-label sales exceeded $270 billion, a 3.4% increase from 2023. This trend is not confined to discount stores; major supermarkets and wholesale clubs are also expanding their private-label offerings to appeal to cost-conscious consumers. For many Americans, these store brands offer a way to get quality products at a fraction of the cost of their name-brand counterparts.
The Future of Grocery Shopping
The future of American grocery shopping points towards continued growth in omnichannel strategies, with increased investment in private-label brands and retail technology. Grocery e-commerce sales are projected to continue their upward trajectory, even as foot traffic returns to stores. The ongoing evolution means that retailers must adapt to meet the changing needs of consumers, offering a combination of in-store experiences, convenient online ordering, and competitive pricing to stay ahead in a crowded market.
