Read the Rest of Our Analysis
(Editors' note: This is part two of a four-part series)
Look through this year’s Super 50 list, at the end of this piece, and from the start, you’ll see the same familiar names in the same places: Walmart, Kroger, Albertsons Cos., Ahold Delhaize USA, Publix, H-E-B — and Amazon?
Sure, it made its way onto the list — and landed such a prime spot — by purchasing Austin, Texas-based natural and organic grocer Whole Foods Market. But one of grocers’ greatest fears in recent years is now officially a reality: Amazon is among the toughest competition in today’s market.
And it’s only going to grow tougher: While its climb up the list from No. 10 in 2016 (as Whole Foods) and ninth in 2017 (also as Whole Foods) to No. 7 this year isn’t due to its own sales, which haven’t changed much in the past year, its first-year preparation to seriously disrupt the grocery market means that we can expect even higher rankings in the coming years.
Download the Complete Rankings
Just look at some of the things that Amazon — on its own or via Whole Foods — has introduced in the past year to catch headlines in food retail: lower prices, special deals on select products at Whole Foods for Amazon Prime members, free grocery delivery to Amazon Prime members via Whole Foods stores, Amazon Lockers in Whole Foods stores, the public debut of the checkout-free Amazon Go convenience-store concept, shoppable recipes through several media brands, the possible replacement of Whole Foods’ rewards program with Amazon Prime, and more.
Top-three grocers Walmart, Kroger and Albertsons all have been some of the most proactive in keeping their places or rising higher on the list. To defend themselves and even fight back, they’re doing things like dramatically expanding same-day grocery delivery; launching more personalized, shopper-friendly ecommerce platforms; introducing scan-as-you-go technology to bypass checkout; launching meal kits or working with/purchasing established meal-kit services; and, to stay relevant, fundamentally changing their in-store and digital setups to create the omnichannel experience that grocers today require. Even Walmart last fall announced direct-to-fridge delivery, one month before Amazon launched its own direct-to-home delivery service.
|2018 Rank||2017 Rank||Company||Fiscal Year-End Sales (000)|
|2||2||The Kroger Co.||$79,240,200|
|3||3||Albertsons Cos. Inc.||$61,261,200|
|4||4||Ahold Delhaize USA||$46,119,320|
|5||5||Publix Super Markets Inc.||$28,535,000|
|6||6||H.E. Butt Grocery Co.||$16,451,500|
|7||8||Wakefern Food Corp. (*Aggregate of ShopRite, Price Rite and The Fresh Grocer banners)||$16,300,000|
|8||9||Amazon (as Whole Foods Market)||$15,655,900|
|10||12||Trader Joe's Co.||$13,000,000|