Costco is often considered unrivaled when it comes to value and customer loyalty, but that appears to be changing.
According to the latest data from Dunnhumby’s latest annual Retailer Preference Index, the warehouse giant has been edged out of the top three spots.
They are now occupied exclusively by regional chains: H-E-B, Market Basket and Woodman’s. This marks the first time in the report’s nine-year history that regional grocers have swept the top three spots.
These types of stores have mastered the ability to offer best-in-class savings while maintaining high perceived quality, leading analysts to classify them as “unicorns.”
While Dunnhumby found that price is the primary driver for grocery shoppers, the 2026 report revealed a twist. For the first time, there was a simultaneous spike in the importance of quality. It seems shoppers are no longer willing to sacrifice the experience just to save a few dollars.
This is where Wisconsin-based Woodman’s and Texas-based Market Basket excelled, pushing Costco from the No. 3 spot in 2025 to the No. 4 spot this year. These regional chains managed to satisfy the intense demand for savings without making the shopping trip feel like a sacrifice.
Meanwhile, H-E-B is winning by nailing the basics. The Texas-based chain is delivering the low prices of a discounter with the emotional connection of a neighborhood store.
At the same time, the data shows that 41% of a retailer’s long-term success now hinges on a single pillar: price, promotion and rewards. This explains why retailers classified as “savings-first,” such as Aldi, also landed in the top five.
This is about necessity. The economy and inflation have forced consumers to become smarter and more ruthless with their budgets.
Shoppers are migrating to retailers that treat affordability as a mandate rather than a marketing tactic. This has fueled the success of savings-first retailers as well as regional chains that understand the specific economic pressures of their local communities better than a national corporation.
Here is the complete ranking of the top 10 grocers, along with how their rank has changed since last year:
H-E-B (same rank as in 2025)
Market Basket (same)
Woodman’s (was not included in the 2025 ranking)
Costco (fell from No. 4)
Aldi (same)
Winco Foods (rose from No. 8)
Trader Joe’s (same)
Amazon/Amazon Fresh (fell from No. 6)
Wegmans (same)
ShopRite (same)
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