Specialty grocers are continuing to gain market share as consumers become more selective in how they spend on groceries. A new Consumer Edge report shows overall grocery spending declined 3% year-over-year, but shoppers are not simply cutting back—they are shifting toward retailers that offer either strong value or a differentiated experience.
Trader Joe’s stands out as a clear winner, posting more than 3% growth and leading the sector in customer loyalty. The brand is gaining traction across all income levels, with particularly strong growth among younger shoppers. Many consumers are also splitting their grocery spending, frequently pairing Trader Joe’s with other specialty grocers like Sprouts and Wegmans.
Meanwhile, traditional supermarkets are losing share across all income groups, with the steepest declines among lower-income shoppers. Discount grocers, after several years of rapid growth, have also begun to plateau.
