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Texas chain beats Amazon, Costco for top grocery store title

A Texas-based supermarket chain has once again been named America’s Best Grocery Store, beating out major competitors, including Amazon, Costco and Trader Joe’s.

San Antonio-based H-E-B has been named the No. 1 grocery retailer in the U.S. for the fifth time in nine years, according to Dunhemby’s latest annual grocery store rankings.

The study found that the family-owned company, which was founded in 1905 and operates more than 440 stores, is “strongly entrenched as a top retailer due to its superior ability to offer a combination of best savings, quality, expertise and variety.”

Massachusetts-based Market Basket took second place, followed by Wisconsin-based Woodman’s in third place.

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H-E-B grocery store in Prosper, Texas, September 2, 2025. (Jake Dawkins/Bloomberg via Getty Images)

“For the first time, the three leading retailers in the United States are all regional chains,” Dunhemby noted.

Costco ranked fourth, followed by Aldi, WinCo Foods, Trader Joe’s, Amazon, Wegmans and ShopRite, rounding out the top 10.

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It costs Costco Wholesale Company 982.86 +18.60

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Amazon, which topped the rankings in 2021 and 2022, fell two places this year, while Sam’s Club fell six places.

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Grocery store chain Trader Joe's

Customers shop at a Trader Joe’s store on December 10, 2025 in Chicago. (Scott Olson/Getty Images)

The study evaluated 81 major grocery stores in the United States, combining financial performance with survey responses from more than 11,000 American shoppers.

Participants were asked about prices, quality, convenience, operations, and online ordering.

These ratings come at a time when consumers face increasing financial pressures.

Shopper confidence declined last year amid concerns about rising prices, limited job opportunities and stagnant wages, according to Matt O’Grady, president of the Americas for Dunhemby.

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Costco bakery with woman shopping

A woman selects croissants from the Costco bakery section in Queens, New York (Lindsay Nicholson/UCG/Universal Image Group)

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“Consumers at all income levels are feeling the pressure and are making more price-sensitive choices,” O’Grady said in a statement. “In this environment, building trust with American shoppers has never been more important.”

Overall food prices rose 0.7% in December and 3.1% from a year ago, according to the December Consumer Price Index.

The Consumer Price Index for all items showed that inflation pushed prices up by 0.3% last month and 2.7% on an annual basis.

FOX Business’ Eric Revell contributed to this report.

2026-01-21 22:44:00

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