JANESVILLE — Janesville-based Woodman’s Markets has risen to third place in a national ranking of the U.S. grocery market, moving ahead of Costco for the first time.
According to the recently released ninth annual dunnhumby Retailer Preference Index, this is the first time in the history of the report that regional retailers have swept the top three positions.
The move by Woodman’s into the top three was driven by high performance in key categories, specifically price, promotions and rewards, according to the report.
These factors were identified as the most significant drivers of long-term success for retailers. Woodman’s also received high marks for its operations and product quality, contributing to its rise over national competitors.
Texas-based H-E-B maintained the first-place position for the fifth time in nine years, while New England’s Market Basket ranked second.
The study, which examines the $1 trillion U.S. grocery market, found that Costco now sits in the fourth-place position, followed by Aldi and WinCo Foods.
The report highlights a growing trend where shoppers are prioritizing savings more than in previous years.
Competitive pricing and rewards programs now account for 41% of a retailer’s long-term market success, a record high for the index. Analysts noted that top-performing regional chains have successfully balanced affordability with a high-quality shopping experience.
Other retailers rounding out the top 10 included Trader Joe’s, Amazon, Wegmans, and ShopRite.
The data used for the rankings combined financial performance with customer surveys of 10,000 U.S. households to determine which stores are most effective at building emotional bonds with shoppers and securing market share.