H-E-B Dominates U.S. Grocery Retail Scene in 2024: Costco Slips to Third
In a striking turn of events in the grocery retail sector, H-E-B has once again secured the coveted No. 1 spot in the dunnhumby Retailer Preference Index (RPI), leaving behind retail giants like Amazon, which now holds the No. 2 position, and Costco, which has surprisingly dropped to third. This headline news, brought to you by Jamie Grill-Goodman, Editor in Chief, highlights the dynamic shifts in the U.S. grocery landscape as of January 11, 2024.
H-E-B: A Three-Time Champion, Outshining Amazon and Trader Joe’s
For the first time in RPI ranking history, H-E-B emerges as a three-time leader, surpassing the twice-ranked top grocers Amazon and Trader Joe’s. This achievement underscores H-E-B’s consistent prowess in meeting consumer needs and preferences.
Inside the RPI Rankings: A Blend of Financial and Customer Perception Data
This year’s RPI, a comprehensive survey involving 10,000 U.S. households evaluating 65 retailers, uniquely combines financial results with customer perception. The ranking focuses on five critical drivers of the value proposition: Price, Promotions, and Rewards; Speed and Convenience; Quality; Digital; and Operations.
Retailers’ Challenge in 2024: Understanding Customer Needs
According to Matt O’Grady, dunnhumby’s president of the Americas, 2024 poses significant challenges for retailers. With economic headwinds influencing consumer behavior, understanding and catering to customer needs and competitive positioning are more crucial than ever.
The Top Ten: A Diverse Mix of U.S. Grocery Retailers
The top ten in the RPI include a varied group: Market Basket (4th), Sam’s Club (5th), Wegman’s (6th), Aldi (7th), Shoprite (8th), and Walmart Neighborhood Market (9th), rounding off with Walmart at the 10th position.
H-E-B’s Success Formula: A Blend of Savings and Superior Experience
H-E-B’s dominance in the RPI is attributed to its strong customer value proposition, combining savings with an exceptional shopping experience, augmented by digital innovation.
Amazon’s Consistent Top Three Presence: A Segment-Specific Strategy
Amazon’s consistent ranking within the top three of the RPI every year is a testament to its segmented approach, focusing on attracting diverse segments of the general population.
Kroger Banners: Making Significant Strides in the RPI
Two Kroger banners, Kroger and Fry’s, have entered the top quartile for the first time, driven by improved price perception among consumers.
The Evolving Retail Landscape: High Competitive Intensity and Changing Value Propositions
With unprecedented changes in consumer preferences and economic uncertainty, the retail landscape is more competitive than ever, compelling retailers to realign their value propositions with customer needs.
Forecasting a Sluggish 2024 for U.S. Grocery Sales
dunnhumby forecasts a modest growth of 0.5% to 1.5% in U.S. grocery market sales for 2024, marking one of the slowest growth rates since the 2009 Great Recession, influenced by ongoing economic challenges faced by consumers.
