Top 10 Grocers for 2016 Revealed

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Top 10 Grocers for 2016 Revealed

By Tim Denman - 10/31/2016
The grocery war continues to wage. Consolidation and shopper demand for lower prices have forced grocers into a promotional environment the likes of which the segment has not seen since the nationwide belt tightening following the great recession.

As newcomers and industry mainstays fight it out for their piece of the $650 billion grocery market, the Bureau of Labor Statistics reports that food prices dropped by 1.6% in July — the eighth consecutive month of declining food prices.

While the American consumer benefits from grocery deflation the industry is faced with the difficult task of keeping sales high in the midst of an ongoing price war. The members of RIS’ Grocery Top 10 report have been able to not only maintain market position but also grow during this volatile time. In fact, all but one of the members of the report have seen sales increase over the past year.

The complete report is available for free download here. Below is a sneak peek at the results of two industry leaders: third-place finisher Whole Foods Market and fourth-place finisher Costco.

Whole Foods Market. The grocer scored near the top in almost every category except for stock performance and Social Strength. Shares fell over 7% over the past year as Whole Foods lost market share in the healthy and organic segment, and rumors continue of an impending sale. The grocer’s inability to keep its organic-obsessed shopping base from fleeing to the competition is reflected in its poor performance in the social metric. However, the grocer continues to expand into new markets including its recently opened store in a low-income Chicago neighborhood. The brand promised to sell roughly 30 staples the typical resident buys below competitive pricing.

Costco. The membership-style retailer earned its position thanks to first-place finishes in CEO Rating and Employee Satisfaction. It is not surprising that Costco employees ranked the company and its CEO so high considering its benefits packages is one of the best in the industry — health, dental, 401K, stock plan and more. In addition to the impressive benefits package, Costco also increased its minimum wage to $13 per hour earlier this year, an increase that costs the company nearly $40 million per year.