Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In
Article

The Grocery Sector in 2023: An End-of-Year Recap

Find out which grocery brands were most popular in 2023, and the broader trends that are shaping brick-and-mortar grocery.

By 
Lila Margalit
January 22, 2024
The Grocery Sector in 2023: An End-of-Year Recap
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

For grocery stores, last year held plenty of challenges – from high food-at-home prices to increased competition from non-traditional grocery players like dollar stores and superstores. But 2023 also offered the segment plenty of opportunities. Discount chains made a strong showing – and customers spent more time browsing grocery aisles, loading up on essentials and making every trip to the store count.

But which grocery brands were most popular in 2023? Did large national chains dominate the scene, or did regional and local banners also have a role to play? And what can foot traffic analytics tell us about some of the broader trends that shaped brick-and-mortar grocery shopping last year?

We dove into the data to find out. 

And the Winner is… Kroger!

The nation’s most-visited grocery banner in 2023 was Kroger, which captured almost 19% of annual foot traffic to the nation’s ten most-frequented grocery chains. Safeway, owned by Albertsons, also made the top ten list. 

But significantly, several regional chains also garnered significant nationwide visit share – including Texas cult-favorite H-E-B, midwestern Meijer, and East Coast Food Lion and ShopRite. Aldi, the no-frills budget chain that keeps prices low by offering a limited inventory of mainly private-label products, emerged as the fourth most-visited grocery store in the country. And fan-favorite Trader Joe’s, also known for its high-quality own-label merchandise, drew 6.5% of visits to the top ten brands.

Pie Chart: Kroger's Kroger Banner Leads Nationwide Relative Share of Grocery Visits. Ten most-visited chains comprise 42.6% of total grocery visit share for 2023.

Plenty of Room for Regional and Local Players

And drilling down deeper into the data for each of the fifty states shows that each region of the country had its own local favorite. Kroger banners – including Kroger, Smith’s, King Soopers, Dillons, Fry’s Food Stores, Fred Meyer, and Pick n’ Save – topped the charts in 14 states. In one of these (Oregon), Kroger’s Fred Meyer was tied for first place with Safeway, an Albertsons banner. In addition to Oregon, Albertsons banners took the lead in nine more states, mainly in the Western region of the U.S., while Ahold Delhaize banners ranked first in seven Northeast and South Atlantic states. And a variety of more local chains held sway throughout much of the Midwest and parts of the South.

Map: Kroger Banners Are the Most-Visited Grocer in 14 States

A Changing Customer Profile

Who were the shoppers driving visits to brick-and-mortar grocery stores in 2023? Location intelligence shows that overall, visitors to grocery chains last year tended to come from areas with slightly higher median household incomes (HHIs) than the nationwide average. Less affluent consumers, perhaps, were more likely to seek out lower-cost grocery alternatives like dollar stores. At the same time, there remained significant HHI gaps between chains, likely reflective in part of regional differences.

Bar Graph: Visitors to Grocery Stores tend to come from more affluent areas but there is variance among chains.

 

And comparing the overall median HHI of grocery chains’ captured markets to that of previous years reveals a small but distinct decline in the relative affluence of likely grocery visitors, from $76.2K in 2019 to $73.8K in 2023. Over the same period, the share of “Flourishing Families” in the chains’ captured markets (A psychographic segment encompassing affluent middle-aged families and couples) decreased slightly, while the share of “Singles and Starters” increased. 

These shifts may be partially due to the more widespread adoption of online grocery shopping among certain audience segments in the wake of COVID. While ecommerce only accounted for an estimated 7.2% of grocery spending as of May 2023 – with high delivery fees continuing to deter many Americans from going the online route – higher-HHI consumers may be particularly willing to prioritize convenience over price. 

Graphs: The demographic and psychographic Profiles of In-Store Grocery Shoppers Have Shifted Over the Past Four years. Based on STI: PopStats and Experian: Mosaic datasets and Placer.ai captured trade area data

Key Takeaways

For grocery stores, 2023 was all about value – with many customers flocking to discount chains and going out of their way to maximize savings. Still, traditional mainstays like Kroger and Albertsons continued to capture the biggest pieces of the grocery pie. 

What does 2024 have in store for the grocery space? Will shoppers place less emphasis on savings as inflation continues to ease? And which chains will emerge as nationwide and regional winners?

Follow Placer.ai’s data-driven retail analyses to find out.

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.
Stay Anchored: Subscribe to Insider & Unlock more  Insights
Subscribe
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
INSIDER
Stay Anchored: Subscribe to Insider & Unlock more Foot Traffic Insights
Gain insider insights with our in-depth analytics crafted by industry experts
— giving you the knowledge and edge to stay ahead.
Subscribe
In-Store Retail Media Networks in 2025
Aldi, Trader Joe’s, and Lidl: Grocery's Power Trio
L.L.Bean’s Legacy Products Continue to Excite New Shoppers
Service Shift Pays Visit Dividends for Staples
Placer.ai Office Index: June 2025
Potential Tariffs Impact Shopper Behavior in the Baby Space
Placer.ai June 2025 Mall Index 
Where Is Domestic Traffic to Airports On the Rise? 
FSR Roundup: Casual and Upscale Dining Thrive
Beyond the Discount: Can Protein and a "Back to Basics" Approach Re-energize Starbucks?
Bahama Breeze’s Bet
June Industrial Manufacturing Update: A Tale of Two Economies in Mid-2025
How Limited Service Is Succeeding in 2025
Big Lots: Back in the Bargain Game
Do Exclusive Offers and Product Scarcity Still Move the Needle for Retail?
Stanford Stadium: The Coldplay Effect
Target's Back to School Comeback Window 
What Lies Behind Nike's Return to a Multi-Channel Strategy?
Capturing Diners With Creative Offers: LTO Home Runs in 2025
How Did the "Yes, JCPenney" Campaign Impact In-Store Traffic? 
Luxury Apparel’s Recent Strength
What's In Store For Back to School 2025? 
Placer.ai May 2025 Office Index 
Local Eats on the Rise
Living Inside America’s Oldest Enclosed Mall: Arcade Providence and the Promise of Mixed-Use
Burger King’s Fire-Breathing LTO Drives Visits
Placer.ai Mall Index: May 2025 & Memorial Day Strength
Coach Keeps Visits Up
DICK’s Sporting Goods Expands Its Audience Reach with Foot Locker Acquisition
Darden Restaurants: Raising the Steaks in 2025
Much Ado About Store Size
Discount & Dollar Stores Emerge as a Front Runner in 2025 
What Can Pharmacy Chains Gain From Rite Aid’s Closures?
Jagalchi Food Hall Opens at Serramonte Center and Crowds Follow
Memorial Day 2025 Consumer Traffic Recap 
Five Below and Ollie’s Continued Foot Traffic Success
Kohl’s: Bright Spots to Build On?
Gauging the Tariff Impact on Manufacturing – May 2025 Update 
Wayfair at Year One – A Go-To Furniture Destination Spot
Who Attended the 2025 Kentucky Derby?
Lululemon and DICK’s: Scoring Big With Celebs and Events
Gap & Ulta Traffic Rebound After Tough Start to 2025
Can Chili’s Repeat its 2024 Success in 2025? 
Dollar Stores: Stability in The New Year
How Did Consumers Celebrate Mother's Day 2025?
Off-Price And On Point
Department Stores in 2025: A Mid-Year Recap
Boot Barn Still Growing in 2025
Wholesale Clubs Find Success in Q1 2025 
Lowe’s and The Home Depot: Weathering Q1 Storms and Looking to the Horizon
QSR Q1 2025 Final Thoughts
Placer.ai April 2025 Office Index: Recovery Apace
How Are Coachella Crowds Evolving? 
Broad Pickins’ for Big Chicken
Placer.ai Mall Index: Traffic Up Across All Mall Formats 
The Untapped Potential of Class-B Malls 
First Watch Traffic Continues to Climb 
Warby Parker and Allbirds: Stabilization Trends Into 2025
Resilience 5 Years Post-Covid:  Spotlight on Victoria Gardens in Rancho Cucamonga, CA
Self-Storage: Resilience in 2025
Aldi & Lidl's Winning Formula
Dutch Bros Gains, But Starbucks Holds Top Spot
Love in the Time of Bookstores
CAVA and sweetgreen Take to the Suburbs
The Impact of QSR Promotions in Q1 2025
Sinners Fuels Movie Theater Momentum
Health-Centric Grocers Lead the Way 
Crafting a Goodbye: What Location Analytics Reveals About JOANN’s Departure
All The Things I Think I Think About Retail Over The Last Quarter
What Visitation Data Reveals About Industrial Manufacturing Demand Ahead of Tariffs
McDonald’s & Chipotle Q1 2025 Recap
Location Intelligence On Display: A Look at Los Angeles's Top Museums
3 Insights Into the Shopping Habits of Older Consumers 
Placer 100 Index, March 2025 Recap – Which Chains Weathered the Storm? 
The Post-Pandemic Retail Evolution: A look back on the last five years
Orlando Theme Park Wars Heat Up 
Albertsons Analysis: Stable Start to 2025
What Visitation Data Reveals About Consumer Behavior Ahead of Tariff Implementation
Block-Buster Alert: A Minecraft Movie Placer Byte
Placer.ai March 2025 Office Index: Back to Recovery
Q1 2025 Quick-Service and Fast-Casual Recap
Retail & Dining Q1 2025 Recap: Budget-Friendly Segments Shine 
Placer.ai March 2025 Mall Index: Visits Rebound 
Meal Prep Madness: Wild Fork Foods and Clean Eatz
Dave & Buster’s Ups Its Game
Coffee Visits: Perks in The Segment 
The Dining Habits of College Students
Old Navy's Foray Into Occasionwear
JonasCon Brings Even More Experiential to American Dream 
What Happened to Family Dollar? 
The Impending Transformation of Bev-Alc Retail
CVS and Walgreens in 2025
Target’s Bet on Babies 
The Changing Apparel Landscape in 2025
Trader Joe’s and Aldi’s Continued Success
Retailers Betting on High Income Households
Brooks Brothers Rightsizing Success
The Rise of Smaller-Format Home Improvement Retailers: How Ace Hardware and Harbor Freight Are Outpacing Big-Box Chains
Walmart’s Mall Purchase: Towards a More Diversified Portfolio 
Placer.ai Named One of America’s Best Startup Employers 2025 by Forbes