Top 50 Grocers: Independents Make Gains; Hispanic Grocer Bodega Sees Huge Jump

Half of the grocery companies in the rankings are majority family-owned, employee-owned or privately held — meaning that they answer to no one but their customers. That’s a loose definition of an independent grocer, and one that many of the smaller independents probably won’t agree with. But it does go to the point of the power of independents in driving the industry.

And it is where most of the “action” is happening. The rankings of the top four grocers have remained unchanged for the past three years, and the top five have been the same, although some have jockeyed for position a bit, since at least 2015.

But take a look at the middle and below — that’s where the real action is, especially among independent operators. 

In last year’s rankings, it barely cracked $1 billion in sales, but the number of locations jumped from 59 to 125 due to acquisitions, including the 63 stores it gained when it purchased Fiesta Mart at the end of the first quarter last year. It’s now one of the largest Hispanic-themed chains in the country.

“The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known operator,” Carlos Smith, president and CEO of Paramount, Calif.-based Bodega Latina, said at the time of acquisition. “Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high-quality products at the lowest possible prices.” 

While Bodega’s ascent came by acquisition, sales grew by about $54 million (from the combined sales of the two chains last year), which demonstrates the split in where shoppers are choosing to spend their money. On one end of the spectrum, they’re choosing specialty markets like the ones Bodega operates, while the other end is discount stores. 

Other independents, like Thibodaux, La.-based Rouses Supermarkets, are also benefiting from consumers’ choice to shop specialty. Rouses makes its Super 50 debut this year, at No. 47. Like Bodega Latina, it has also made strategic acquisitions in recent years, including fellow independent LeBlanc’s in 2016 and three locations of Frank’s Supermarkets last year.

Regional and independent chains are attracting attention, many because they’re often well regarded by their shoppers. The four highest-ranking grocery chains in a recent Consumer Reports survey (see sidebar) were independently owned regional chains H-E-B’s Central Market, Wegmans, Heinen’s and Gelson’s.

Central Market, as part of the San Antonio-based H-E-B, ranks sixth on PG’s 2019 Super 50 list, while Wegmans comes in at No. 16. Chains like these may be exactly what Amazon is looking for to expand its brick-and-mortar footprint outside of Whole Foods Market.

Amazon’s acquisition of Austin, Texas-based Whole Foods was top of mind for many of last year’s Super 50 companies, and this year, it’s the news that the Seattle-based internet behemoth plans to launch a separate grocery chain. Word on the street indicates that this new concept could open in the Los Angeles area sometime before the end of this year, with growth coming from the acquisition of regional brands. 

These smaller, independently owned regional chains have a handle on what their customers want, and have the agility to change to meet shifting demands quickly, which continues to garner them sales — and attention.