Costco, Walmart and Trader Joe’s thrashed as Texas supermarket chain H-E-B is named America’s best grocery store
By Martha Williams
Daily Mail
Jan 20, 2026
The El Dorado H-E-B supermarket where I get most of my groceries
An adored Texas supermarket chain has been ranked the best grocery store in America yet again.
H-E-B, which operates 435 stores across Texas and Mexico, has topped grocery data company Dunhumby's annual ranking of the 81 largest grocery stores for the fifth year in a row.
New England favorite Market Basket held on to second place, while Wisconsin-based Woodman's surged into the top three for the first time — pushing Costco down from third to fourth.
Aldi, WinCo Foods, Trader Joe's, Amazon, Wegmans, and ShopRite round out the top 10. Sam's Club fell six places after coming in eighth place last year.
Family-owned H-E-B, founded in 1905 when Florence Butt began selling food from the ground floor of her Kerrville home, has long enjoyed near-cult status in Texas.
Shoppers praise it for combining affordable everyday essentials with Texas-made brands and popular in-house products.
The study, in its ninth year, asked 11,000 shoppers how stores meet their day-to-day needs. They were asked if prices feel affordable, shops are easy to use, shelves stay stocked, and whether deals and loyalty perks genuinely help stretch budgets. Online ordering, delivery, and overall convenience also factor in.
Those shopper experiences are blended with financial results to produce Dunnhumby’s annual retailer performance index, a snapshot of which grocers are winning in today’s fiercely competitive $1 trillion US grocery market.
H-E-B has been ranked the best grocery store in America yet again. More than 750 customers lined up for the opening of a new store in Manor, Texas, last year
For the first time ever, America's top three grocers are all regional chains, proving that big wins don't always come from big boxes.
And what's driving this friendly food fight? According to the RPI, it's all about stretching a dollar.
A record 41 percent of a retailer's long-term success now comes down to how well it helps shoppers save — through sharp prices, tempting promotions, and loyalty perks.
In today's grocery game, the real winners are the stores that keep both carts and wallets feeling full.
'2025 threw a lot of curveballs at the US consumer. Shopper confidence dropped as concerns about higher prices, fewer job opportunities, and stagnant wages eroded purchasing power,' said Matt O'Grady, president of the Americas for Dunnhumby.
'Consumers across all income levels are feeling the squeeze and making more price-conscious choices. In this environment, building trust with American shoppers has never been more critical.'
Aldi and Walmart have remained steadily popular over the years, despite economic uncertainty, because they offer some of the cheapest prices without sacrificing quality.
H-E-B operates 435 stores across Texas and Mexico
H-E-B is beloved by locals for its fresh ingredients and distinctive in-house products. A customer shops in the organic vegetable isle at a H-E-B supermarket in Austin, Texas, in April 2024
Market Basket snagged second place for the second year in a row
Aldi announced plans to open 180 new stores in the US, after opening 225 last year
Aldi announced plans to open 180 new stores in the US, after opening 225 last year — a true testament to the German supermarket's success. It is a bold move at a time when many retailers are shutting stores — but one that reflects a simple reality for American shoppers: price now trumps everything.
Aldi now operates more than 2,600 US stores and is aiming to reach nearly 3,200 by 2028 — one of the most aggressive expansion plans in American grocery retail, and enough to make it the fastest-growing national chain.
The rise of Aldi — alongside rival German discounter Lidl and value favorite Trader Joe's, which operate similar private-label-heavy models — is squeezing traditional grocers such as Kroger and Albertsons.
Even big-box giants like Walmart are feeling the pressure.
While Walmart still wins on selection, national brands, bulk buying and its one-stop-shop appeal, Aldi is generally cheaper on everyday staples and store-brand essentials — exactly where consumers are cutting costs.
Amazon, which is rapidly expanding its grocery ambitions online and through Whole Foods, which it bought in 2017, is also emerging as a major threat to traditional stores.
In December, Amazon expanded same-day delivery of fresh food to more than 2,300 cities and towns, with plans to broaden the service further this year.
Amazon and Aldi compete fiercely in the budget grocery market, with Aldi generally winning on ultra-low prices for its private-label staples, while Amazon counters with convenience.
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