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This Beloved Grocery Store Beats Costco as the Best Grocery Chain in America for 2025

And it’s only based in one U.S. state.

In news that will come as no surprise to any Texan, grocery store chain H-E-B has been named the top United States grocery retailer for the third year in a row, according to the dunnhumby Retailer Preference Index (RPI). The data analytics firm conducts a nationwide study that examines the $1 trillion U.S. grocery market, and this is the fourth time H-E-B has made the top spot in eight years.

"Since releasing the first U.S. Grocery RPI eight years ago, retailers and shoppers have weathered Covid, supply chain disruptions, agricultural shortages due to climate impacts, and a prolonged period of high food inflation that have reshaped shopping behavior and how Americans perceive the grocery retail environment," said Matt O'Grady, dunnhumby's President of the Americas. "Clients across the grocery retail sector understand that market success is dependent upon saving shoppers money and implementing innovative pricing technologies to maintain their customer base."

25 Best Buys at H-E-B, According to a Lifelong Fan

H-E-B
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With H-E-B taking the top spot, the second place honors went to Market Basket, Costco came in at number three, WinCo Foods at four, and Aldi came in at number five. According to dunnhumby, the San Antonio-based chain won thanks to a "superior ability to deliver a combination of better savings, quality, shopping experience and assortment."

Here's how the rest of the top ten breaks down:

Amazon

Trader Joe's

Sam's Club

Wegmans

ShopRite

The London-based analyst firm surveyed 11,000 consumers, and found saving money is the most important factor for customer satisfaction, with 38% of a retailer's long-term success reliant on price, promotions, and rewards proposition. "This year's RPI shows that the fundamentals still apply as H-E-B has proven year over year. Any format can win," O'Grady said. "The first step is to understand your customers and how customers perceive you. Secondly, prioritize efforts to save your customers money that is consistent with your positioning. And finally, use the RPI as a framework to help you determine where you should invest and where you should make tradeoffs."

6 Things H-E-B Does Better Than Other Grocery Stores

H-E-B
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So what makes H-E-B so special? The chain is beloved among Texans, who appreciate the pride the store takes in their state and its people. "The ability to manufacture food and produce food locally here in Texas is really important for Texans," Dya Campos, director of governmental and public affairs, tells San Antonio Magazine. "What customers may not be able to see all day is how much work it takes to get product to the shelf."

H-E-B currently has 420 locations in total, including 50 in Mexico where the chain is called Supermercados Internacionales H-E-B, and is busy expanding into the Dallas-Fort Worth, Austin, and Houston regions.

"They carry high quality products, they have an incredible private brands program, they run very efficient, high-caliber stores—they're always clean and well merchandised," says Scott Benedict, director and executive professor at the Center for Retailing Studies at Texas A&M University. "They understand their customer, which is tough for retailers to master."

Ferozan Mast
Ferozan Mast is a science, health and wellness writer with a passion for making science and research-backed information accessible to a general audience. Read more about Ferozan
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