The world’s biggest grocery and supermarket chains are in the U.S. Regarding retail sales. The numbers are higher for the US-based grocery chains that contribute immensely to the nation’s revenue but also greatly boost the job market and have proved to be among the fastest-growing sectors in the U.S.
According to statistics, there are over 60,000 grocery shops in the United States, around 15,000 in Canada, and about 3,200 in Mexico. Moreover, most retail food suppliers are located in New York, with approximately 13,077 grocery shops, California, with 10,595 shops; and Florida, with 5,234 stores. This article will mainly emphasize the largest Grocery Chains in the U.S. in 2023.
Overview of the US Grocery Industry
Walmart, Kroger, and Walgreens are three of the biggest companies in the US in this field. The food retail industry of the US economy includes these supermarkets, convenience stores, and mass merchandisers. Post-pandemic, there are many more online shops than there used to be.
However, an extensive network of specialty food and convenience stores exists. These do most of the work of meeting the needs of nearby neighborhoods.
Increased in the country’s retail food and beverage sector by up to 85% seen in 2017. This has made it necessary to put money into this area. In the United States, people spent over $8 trillion on shopping and food services in 2022. This is more than 9% more than the year before. The number of supermarkets and other grocery stores in the United States has decreased slightly to about 63 thousand. However, sales in this format have hit 810 billion dollars in 2022.
The US grocery industry is also helping to set a new trend: the fast growth of internet shopping.
Most Americans prefer supermarkets as their primary food source and other things they use daily. However, edible food sales are still primarily done in stores. But digital shopping is expected to grow significantly over the next few years. This will bring about a massive change in the grocery business.
In 2023, online grocery sales are expected to make up about 13.5% of the total market. This means that more and more Americans will quickly switch to online outlets to meet their shopping needs. Online grocery shopping gives you more delivery options and makes things easier. As a result, sales are expected to hit about 190 billion US dollars nationwide by 2024.
This change in decisions is also caused by the fact that people have a lot of options. People can now buy groceries online through a variety of sites and channels. Traditional grocery store chains like Walmart offer some of these. Even though there is more competition, the business still controls about 28% of sales for food delivery and pickup.
The key trends and challenges faced by grocery chains in recent years
There are clear changes in the grocery shopping market around the world. These changes are also clear in the economy right now. E-commerce is still a strong trend from the pandemic age.
It is changing the grocery retail sector in a big way. In December 2019, just under 4% of online food sales were made in the US market. But it is no longer in its early stages and is expected to grow quickly to about 25% by 2030. Even in Europe, grocery shopping online is expected to grow much faster.
Changes in how people think are another important trend in the retail business. People used to be cheap, but now they put health first and are willing to spend money on high-quality food no matter how much it costs. Your grocery reports say they are more aware of value because they are trying to stretch their budgets, want to eat better and care about the environment. In this case, the shop with the better-quality products will make more money, whether it’s a supermarket, a small store, or an e-commerce site.
Regarding e-commerce, it is indeed a big trend in the world after the pandemic. It has become well-known and famous, even among older people who weren’t interested in this format. But the fact that goods are easy to get and can be sent right to the door has made it easier for people who are sick or old.
The buying experience still greatly impacts what people like and don’t like. During the pandemic, people had different ideas about what shopping should be like at each store.
Consumers who are very linked want ease of use and mass customization, and if they don’t get it when they want it, they will go elsewhere to shop. In the retail business, it’s clear that they need to step up their game by giving customers the best shopping experience, whether they’re browsing the halls of a store or looking at a website. For example, more is needed for a business to sell a product; instead, it needs to sell exclusive, one-of-a-kind things customized and personalized to meet customer needs.
Regarding the problems with supply lines for supermarkets, retailers worry most about food going bad. Every year, a lot of money is lost because a shipment’s location, temperature, humidity, and other factors can’t be tracked in real time. Supermarkets in the U.S. say that about $18 billion worth of food goes bad and can’t be used.
Top 5 Largest Grocery Chains in the US in 2023
Amidst all the rapid changes in the retail industry and the emerging new challenges, certain grocery chains have successfully established themselves as household names in the US and have created a towering reputation amongst consumers. The Best Grocery Chains of USA in 2023 are as follows:
1. Walmart
With a 16.98% retail share of the market and $611 billion in sales, Walmart took the top place overall in this list of the Top 100 Retailers. Additionally, it takes first place in the grocery category.
2. Amazon
It came in second place overall and in the groceries category. The corporation generates nearly $514 billion in revenues or 14.28% of the retail market.
3. Costco
came in third in groceries and fourth overall in the retail rankings. It has a market share of 6.51% with revenues of $234 billion. Sales of $210 billion last year were higher this year.
4. Kroger
With $148 billion in revenues and a 4.12% market share, the firm has successfully handled numerous substantial enterprises.
5. Target
With sales of $109 billion and a 3.03% share of the retail sector, the corporation has advanced significantly in the last 12 months.
Industry Outlook and Future Trends
Recent studies have brought it to the forefront that grocery stores significantly impact the products that food manufacturers and producers present to the market. Therefore, the future of grocery merchants depends on global trends like e-commerce, lifestyle, sustainability, and strategic alliances, owing to the changes in this sector.
Conclusion
Hence, the prospects and survival of the grocery chains depend immensely on their abilities to change their approaches, upgrade their services and explore new avenues to ensure the best customer experience. In 2023, the above-stated grocery chains have succeeded in their endeavors, irrespective of the plethora of changes emerging in this sector. Similarly, evolving according to the market demands can guarantee the success of the other grocery chains in the coming days.
