Texas Grocery Chain Beats Costco and Amazon for Top Spot

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Texas Grocer H-E-B Crowned America’s Best, Outshining National Giants

In a surprising turn for the retail world, a recent study has declared San Antonio-based H-E-B the top grocery chain in America, besting household names like Costco, Amazon, and Trader Joe’s. This marks the fifth time in nine years that the Texas favorite has claimed the coveted top spot, highlighting a growing trend in consumer preference for regional retailers.

The annual ranking by Dunnhumby, a leading customer data science company, meticulously evaluated 81 grocery stores across the nation. The comprehensive assessment combined financial performance metrics with insights from over 11,000 American shoppers. These consumers weighed in on crucial factors including pricing, product quality, convenience, operational efficiency, and online ordering experiences.

“For the first time, the leading three retailers in the United States are all regional chains,” Dunnhumby noted in its report. Following H-E-B, Massachusetts-based Market Basket secured the second position, with Wisconsin’s Woodman’s taking third. This strong showing by regional players suggests a shift in how consumers prioritize their grocery shopping experience.

The study also shed light on the economic pressures facing U.S. consumers. It found that Americans are more inclined to prioritize saving money on groceries compared to their counterparts in other developed nations, a direct reflection of rising costs for basic necessities. “According to Dunnhumby’s Consumer Trends Tracker, 56% of Americans cannot cover a $400 emergency, a metric that has worsened since December 2024,” the report detailed.

Matt O’Grady, President of the Americas for Dunnhumby, commented on the challenging economic climate. “2025 threw a lot of curveballs at the U.S. consumer. Shopper confidence dropped as concerns about higher prices, fewer job opportunities, and stagnant wages eroded purchasing power.

Consumers across all income levels are feeling the squeeze and making more price-conscious choices,” O’Grady stated. “In this environment, building trust with American shoppers has never been more critical.”

Among the national chains, Costco placed highest at fourth, followed by Aldi, Winco Foods, Trader Joe’s, and Amazon. Notably, Amazon experienced a significant decline in its ranking, a stark contrast to its leading position in 2021 and 2022 when online shopping surged during the pandemic. The report attributed this drop to the diminished importance of the “digital pillar” in 2025 as consumers returned to in-person shopping.

“For now, H-E-B remains firmly entrenched as the top retailer due to its superior ability to deliver a combination of better savings, quality, experience, and assortment,” the report concluded. While regional powerhouses currently dominate the top spots, the battle for national recognition continues, with established giants like Costco making efforts to enhance customer satisfaction. The report anticipates that the competition for the third spot, in particular, remains wide open, suggesting that the landscape of American grocery retail could see further shifts in the coming year.


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