The Seventh Annual Dunnhumby Retailer Preference Index awarded top position to H-E-B for the third time with Costco and Amazon comprising the runners up among U.S. grocers for the second consecutive year.  The Dunnhumby Retailer Preference Index is based on financial results and customer perceptions.  The customer component comprises five elements ranked among price promotion and rewards linked as the first category, followed by quality, digital ordering, operations and convenience.

Companies in the top-ten included in descending order, Market Basket, Sam’s Club, Wegmans, Aldi, Shoprite, Walmart Neighborhood Market and Walmart Stores.  There is a positive correlation between the position on the Dunnhumby RPI and the compound annual growth rate (CAGR) achieved by retailers. Companies in the top quartile averaged 8.5 percent growth over five years compared to 3.6 percent for retailers in the fourth quartile. 

Matt O’Grady, Dunnhumby President for the Americas, stated “Knowing your customer and your competitive position regarding customer needs will be critical for retailers to scratch out any organic growth in 2024.”  He added, “In this year’s RPI we illuminated how the consumer views the grocery market and how different retailers are meeting the general population’s needs as well as the needs of different consumer segments.”

Dunnhumby predicts that the $1 trillion U.S. grocery market will increase by 0.5 to 1.5 percent in 2024. The market research company points to intense competition coupled with economic uncertainty.  Consumers will continue to search for value responding to low-base pricing and promotions.