Kroger beats Costco in the United States: A key last-minute detail is revealed

The competition among supermarkets in the United States is fierce. Walmart dominates with a significant lead, but behind it, the struggle is intense. Kroger has just dealt a major blow to Costco, showing a figure that could change the balance.

A recent report from Numerator reveals that Walmart remains the undisputed leader. The chain controls more than 20% of the total grocery spending in the country. This means that one out of every five dollars spent on food ends up at Walmart.

Kroger beats Costco

But the key figure is in the fight for second place. Kroger has a market share of 8.9%, positioning it ahead of Costco, which reaches 8.5%. Although the difference is small, it is very significant. Costco had been gaining ground quickly in recent years.

In 2023, Costco had only a 7.6% share. In two years, it gained almost two more percentage points. Its growth is due to its membership model and the value it offers its customers.

Despite this, Kroger keeps its advantage. The company remains a very strong player in the sector. This blow shows that Kroger is not falling behind and can slow Costco's advance.

The supermarket industry in the United States moves about 1.6 trillion dollars a year. It is a huge market, but with very low margins. In general, a grocery store earns between 1% and 3% on its sales.

That means they must sell a lot to generate real profits. Additionally, the products they sell are perishable. They have to be renewed quickly to avoid losses.

Operating costs also complicate things. Rent, utilities, and wages are high. Every penny counts for the business to be profitable.

On the other hand, customers are increasingly alert to prices. The economic crisis has made many switch stores based on offers. Brand loyalty is decreasing.

This forces supermarkets to compete hard on price and promotions. They must not only attract customers but also keep them.

Kroger, far from Walmart

Kroger and Costco reflect this scenario well. The battle for market share is very fierce. Both try to offer more value and better prices.

Meanwhile, Walmart takes advantage of its size to keep a massive lead. In fact, to match Walmart's size, one would have to add the next four largest chains together: Kroger, Albertsons, Publix, and Ahold Delhaize.

Behind Kroger and Costco are other important chains, but with less share. Albertsons has 5%, Publix 4.1%, and Ahold Delhaize similar figures.

The supermarket market is very fragmented and competitive. Pricing strategies, quality, and shopping experience are key to gaining customers.

Kroger is showing that it can grow and withstand the pressure from Costco. The chain seeks to consolidate its position and prevent Costco from continuing to gain ground.

Costco, meanwhile, continues to accelerate its growth. Its model based on exclusive memberships has given it a unique advantage.