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H-E-B, Costco, and More Receive Top Spots in dunnhumby's Annual Grocery Rankings; Matt O’Grady Comments

H-E-B, Costco, and More Receive Top Spots in dunnhumby's Annual Grocery Rankings; Matt O’Grady Comments


CHICAGO, IL
Tuesday, January 23rd, 2024

Examining the $1 trillion United States grocery market is no easy task, but dunnhumby successfully conducted a nationwide study to uncover the top grocery retailers. After concluding its survey, dunnhumby announced that H-E-B was the top U.S. Grocery Retailer in the seventh annual Retailer Preference Index (RPI).

The chain is the first to be recognized as No. 1 in the RPI ranking. H-E-B is followed by Amazon in second place and Costco in third, making them the top three grocers for a second year in a row.

Matt O’Grady, President of the Americas, dunnhumby“Knowing your customer and your competitive positioning regarding customer needs will be critical for retailers to scratch out any organic growth in 2024. Customers are re-evaluating their opinions of retailers more than ever and that will only intensify in the coming months due to the economic headwinds facing consumers,” said Matt O’Grady, dunnhumby's President of the Americas. "In this year’s RPI, we illuminate how the consumer views the grocery market and how different retailers are meeting the general population’s needs as well as the needs of different consumer segments.”

According to a press release, the seven other retailers in the top 10 are 4) Market Basket, 5) Sam’s Club, 6) Wegmans, 7) Aldi, 8) ShopRite, 9) Walmart Neighborhood Market, and 10) Walmart. The dunhumby RPI is one of the only approaches to ranking grocers that combines financial results with customer perception. It includes the largest 65 retailers in the industry that sell everyday food and non-food household items.

In dunnhumby’s seventh annual Retailer Preference Index, H-E-B ranked No. 1, followed by Amazon in second place and Costco in third—making them the top three grocers for a second year in a row

Key findings from the study include:

  • dunnhumby forecasts the U.S. grocery market sales growth will be 0.5 percent to 1.5 percent in 2024
  • Competitive intensity is at an all-time high in this fourth year of economic uncertainty
  • Savings through low base prices and highly personalized promotions and rewards remain the strongest driver of better long-term retailer performance, followed by maintaining a high-quality assortment
  • H-E-B topped the RPI ranking because they have the strongest customer value proposition for the long-term
  • Amazon has been in the top three every year of the RPI and has ranked first twice
  • Two Kroger banners (Kroger and Fry’s) made it to the top quartile for the first time in the history of the RPI

To read more, click here.

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