Costco Passes Kroger in U.S. Grocery Share
Suppliers and traditional grocers should expect sharper price competition as value-format chains keep gaining ground.
Updated on Nov. 1, 2026 in Retail
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Costco overtook Kroger's share of U.S. retail food and beverage sales, holding 8.4% over the last 12 months per consumer analytics firm Numerator. Grocery operators should note that Walmart's 20.3% grocery share and Kroger's ongoing cost cuts are reshaping competitive pressure across the channel.
Why it matters
American households are hunting for grocery savings as gas, housing, and insurance costs climb, and Costco has kept prices steady this year while gaining share steadily over the past two years. Kroger's new CEO and its $5 billion cost program reflect how traditional grocers are responding to that shift in buyer behavior.
Numerator's market share estimates put Costco at 8.4% of U.S. retail food and beverage sales over the last 12 months, up 0.5 percentage points from a year earlier, while Kroger slipped 0.2 points to 8.2%. Walmart holds 20.3% of grocery sales after a 0.2-point gain, and Kroger's $5 billion cost and operations effort has not yet shown up in these share figures.
The players
Costco
Costco is a membership warehouse retailer whose low-margin, high-volume model drives its food and beverage share gains.
Kroger
Kroger is one of the largest traditional supermarket chains in the United States, now under new leadership and a $5 billion cost program.
Walmart
Walmart is the largest retailer in the United States, holding the leading share of grocery sales.
Numerator
Numerator is a consumer analytics firm that publishes market share estimates for retail categories.
Albertsons
Albertsons is a major U.S. supermarket operator that is adjusting employee benefits to manage rising healthcare costs.
The details
Kroger's $5 billion effort to lower prices and tighten operations includes ending contracts with suppliers that do not deliver a good enough deal, along with significant corporate workforce cuts over the next few years. Costco's gains come from holding prices steady this year, which gives value-focused shoppers a reason to consolidate their grocery spending in one place. Walmart faces its own cost pressure, with Deutsche Bank saying rising diesel and transportation costs could outweigh the benefit of its tariff refunds.
Timeline
Costco has steadily gained grocery share across 2024 to 2026.
Numerator's share data covering the last 12 months was released this week.
Kroger hired Greg Foran, former head of Walmart's U.S. business, as CEO this year.
Kroger's planned corporate workforce cuts are set to play out over the next few years.
Market Landscape
The shift follows the pattern Walmart set when its supercenter and price-leadership model pulled grocery share away from traditional supermarkets over the past two decades. Costco's steady two-year gain and Albertsons' slipping share suggest the value-format squeeze on conventional grocers is continuing.
Grocery operators and suppliers should watch how Kroger's supplier contract reviews and Costco's steady pricing affect shelf placement and margin negotiations in the near term. Retailers competing on price should track diesel and transportation costs, which Deutsche Bank says could offset Walmart's tariff refund benefit.
The takeaway
Value-focused grocery share is consolidating around a few large players, so operators should benchmark their own pricing against Costco and Walmart this quarter. Suppliers should review contract terms now, since Kroger is ending agreements with vendors that do not deliver a sufficient deal.
Further reading
For more on how value-format and warehouse chains are reshaping grocery competition, explore our Retail coverage.
Source note: This article includes information reported by Business Insider.
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