Dive Brief:

• H-E-B ranked as America’s favorite grocer in dunnhumby's third annual Retailer Preference Index, knocking Trader Joe's from the top position and surpassing Amazon and Costco. The ranking, which included the 60 largest grocery retailers, incorporated a survey of 7,000 U.S. households as well as financial results.
• Rounding out the rest of the top 10 retailers were Amazon, Market Basket, Wegmans, Costco, Aldi, Sam’s Club, Walmart and Publix.
• Price and quality remain the two most important customer needs, according to dunnhumby, with price rated as the top value among the two across income levels. Price-first retailers have grown at twice the speed of quality-first ones over the past five years, the data firm noted, with Aldi and dollar stores leading the pack.

Dive Insight:

H-E-B's jump from fourth place in last year's dunnhumby index to the top spot this year reflects the banner's efforts to cultivate a strong customer base among Texans with customer service, local products and unique experiences in each store.

The grocer launched a new mobile app in December that allows users to place delivery or curbside pickup orders, and debuted a full-service beauty department at one of its San Antonio locations. H-E-B has also continued to deliver on quality and customer service. For example, it touts one of the fastest grocery pickup times.

The report notes that regional grocers like H-E-B, Publix and ShopRite are winning against some of the major players in grocery retail as they emphasize relevant product assortment. These grocers have also proved successful at fostering a strong emotional bond with their audiences by combining quality, price and convenience.

Some traditional grocers are still leading the way, too, tapping into their many locations to deliver on convenience for shoppers, the report said. 

Dunnhumby notes price still plays the leading role in consumers’ shopping decisions and habits. Aldi earned the top spot based on pricing alone, while Market Basket, Winco, Lidl and Trader Joe's rounded out the top five for price-first retailers. The report noted that not all discount grocers are thriving, with Lidl is struggling due to factors like operational and assortment relevance. Lidl fails to focus on clear categories compared to Aldi, and has leaned more heavily on promotions and rewards.