A woman with a surprised expression in front of a building with the Kroger logo.

Kroger knocks out Costco after a significant fact emerges in the United States

Kroger resists pressure from Costco and seeks to keep its leadership in the fight for market share in the United States

In the competitive world of American supermarkets, the fight to capture the consumer's attention and wallet has never been so intense. Major chains vie for every inch of the market as shopping habits rapidly evolve. In this scenario, every move can change the rules of the game.

The grocery market moves trillions of dollars a year in the United States. Supermarkets must sell large volumes and optimize costs to achieve real profits. Therefore, any advance in market share is vital to keep profitability and presence.

A thoughtful woman with glasses is in a supermarket aisle with a shopping cart and a United States flag in the background.
The supermarket industry in the United States moves approximately 1.6 trillion dollars each year | en.catalunyadiari.com, perfectwave, Getty Images de Hxdyl, Sk de sansak@design

Walmart Dominates, But Kroger and Costco Fight Hard

A recent report from Numerator confirms that Walmart remains the undisputed giant in food sales. The company controls more than 20% of total grocery spending, meaning that one out of every five dollars spent on food ends up in its numerous stores. This figure reinforces Walmart's overwhelming dominance in the sector.

However, the real surprise is in the battle for second place. Kroger holds an 8.9% share, surpassing Costco, which has 8.5%, and although the difference is very narrow, the importance of this small advantage is undeniable. Kroger manages to halt Costco's advance, which in recent years had grown rapidly.

Costco experienced remarkable growth, going from 7.6% in 2023 to the current 8.5%. Its membership-based model and offering value to customers have been the key to its rapid expansion. Even so, Kroger keeps its strength and proves that it is far from giving up ground.

Entrance of a Walmart store with people going in and out and several cars parked in front.
Walmart keeps dominating the market | en.catalunyadiari.com, Grok

A Very Competitive and Fragmented Market

The American supermarket market moves about $1.6 trillion annually, but its margins usually range between 1% and 3%. Perishable products, high operating costs, and customer volatility make profitability quite a challenge. Every dollar and every sale count.

Consumers are increasingly price-sensitive and less brand-loyal, influenced by the current economy. This forces chains to compete aggressively with offers and promotions. Attracting customers and, above all, retaining them has become the number one priority.

Meanwhile, as Kroger and Costco vie for second place, Walmart leverages its size to keep an almost insurmountable advantage. To match its share, one would have to add the participation of Kroger, Albertsons, Publix, and Ahold Delhaize. This fact illustrates the magnitude of Walmart's dominance.

Storefronts of a Kroger and a Costco with clear skies in the background.
Kroger and Costco vie for second place | Google Maps, en.catalunyadiari.com

The chains Albertsons, Publix, and Ahold Delhaize also participate in this battle, although with smaller shares. Albertsons holds 5%, Publix 4.1%, and Ahold Delhaize similar figures. The market's fragmentation forces innovative strategies to capture consumers.

Kroger proves that it can grow and withstand Costco's pressure, while the latter continues to accelerate its growth with its exclusive membership model. The rivalry between these two chains will continue to set the pace in the American supermarket market.