Texas-based grocery chain beats big names like Costco and Amazon to become the best in America

Regional grocers had a fantastic performance as they took the top three spots in the rankings.

PUBLISHED JAN 23, 2026

Shoppers outside a Costco store (Cover Image Source: Getty Images| Photo by ShaunL)

The likes of Costco, Amazon, and Trader Joe’s might be the most popular retail chains in America, but they’re not at the top of their game. A recent report revealed that a Texas-based regional retailer managed to beat all these big brands to become the best in the country. Several parameters were taken into account while establishing the ranking system, combining financial performance with survey responses from more than 11,000 American shoppers. Those surveyed spoke about pricing, quality, convenience, operations, and online ordering.

Shoppers in front of a Costco store. (Image Source: Getty Images | Photo By Justin Sullivan)

The retailer in question is San Antonio-based H-E-B, as per Dunnhumby’s latest annual ranking of grocery stores. H-E-B was founded in 1905 and currently operates 440 stores, as per a report in Fox News. They’ve been quite consistent recently, as it was the fifth time in nine years that they have captured the top spot. In fact, regional retailers in general performed pretty well.

"For the first time, the leading three retailers in the United States are all regional chains," Dunnhumby noted, as Massachusetts-based Market Basket ranked second, followed by Wisconsin-based Woodman’s in third. The study also found that US consumers were more likely to prioritize saving money on groceries compared to their contemporaries in other First World countries, since basic human needs are becoming harder to afford. “According to Dunnhumby’s Consumer Trends Tracker, 56% of Americans cannot cover a $400 emergency, a metric that has worsened since December 2024,” the report added.

Customers outside a H-E-B store. (Image credit: Getty Images | Photo by Brandon Bell)

"2025 threw a lot of curveballs at the U.S. consumer. Shopper confidence dropped as concerns about higher prices, fewer job opportunities, and stagnant wages eroded purchasing power. Consumers across all income levels are feeling the squeeze and making more price-conscious choices," said Matt O'Grady, President of the Americas for Dunnhumby. “In this environment, building trust with American shoppers has never been more critical.”

Among the big boys, Costco ranked the highest in fourth place, followed by Aldi, Winco Foods, Trader Joe’s, and Amazon, respectively. For Amazon, the drop-off has been steep. It was the leading grocer in 2021 and 2022 as the world relied heavily on online shopping due to the pandemic. The report suggests that “rankings declined mainly because the digital pillar became less important in 2025.”

Brick facade of an Amazon office building with logo (Image source: Getty Images/Photo by Smith Collection/Gado)

The study must have taken a while, as it evaluated 81 grocery stores and surveyed 11,000 consumers. Costco has done everything possible in 2025 to make its customers happy, but regional retailers are much more likely to offer better deals given their smaller scale of operations. “For now, H-E-B remains firmly entrenched as the top retailer due to its superior ability to deliver a combination of better savings, quality, experience, and assortment,” the report added. However, the battle for third place is still wide open, and we could see the big names step up to the plate.

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