• by Sarah Mahoney  @mahoney_sarah, March 25, 2025

As food inflation continues to stretch household budgets, grocery loyalty is shifting. Two new reports -- one from Placer.ai and another from YouGov -- reveal that value-focused retailers like Aldi and Trader Joe’s are gaining momentum, both in foot traffic and consumer preference. And Amazon, often dismissed as a niche grocery player, is quietly building strength with Gen Z and Millennials.

Placer.ai’s analysis shows that Aldi and Trader Joe’s both saw year-over-year growth in overall in-store visits and visits per location in 2024. Aldi led the charge with an 18.2% increase, while Trader Joe’s posted a 6.2% gain. Those trends have continued into early 2025, with weekly visit numbers steadily rising. While some of that growth is due to store expansion, average visits per location have increased, suggests deepening shopper loyalty.

The report also noted a key behavioral shift: Fewer shoppers visited other grocery stores before or after going to Aldi or Trader Joe’s. This suggests these retailers increasingly serve as primary destinations for full grocery hauls -- not just supplementary stops.

Income data further reveals the strength of each chain’s value proposition. Trader Joe’s typically attracts higher-income shoppers, with a median household income of $110,100. Aldi’s shopper base skews more middle-income, with a median of $75,700. Both significantly outperform the national grocery average in terms of weekend shopping trips, reflecting consumer preference for stocking up in fewer, more purposeful visits.

“This marks a promising shift for Trader Joe’s and Aldi as they continue expanding their footprints,” the report notes. “By commanding a bigger slice of the grocery pie, both chains are solidifying their positions as go-to destinations.”

A separate study from YouGov also highlights loyalty shakeups. Walmart remains the most considered grocery retailer, with 63.3% of U.S. adults saying they’d shop there on their next trip. The chain continues to lead in perceived value, followed by Aldi and Costco. However, Amazon is showing surprising gains: Its popularity as a grocery destination rose 48% last year, with 12% of respondents naming it as their top choice. Amazon Fresh, in particular, is resonating with younger consumers -- 25.8% of Gen Z and 21.5% of millennials named it their preferred grocery outlet.

When it comes to quality perception, shoppers give the highest marks to Whole Foods Market, followed by Target and Trader Joe’s — indicating that value alone isn’t the only driver of loyalty. For brand marketers, this presents an increasingly complex equation: Price still matters, but so do values, experience, and brand clarity.

These evolving preferences are reshaping how consumers define convenience and loyalty. With inflation driving more price-conscious decisions, retailers that clearly communicate their value -- and deliver on it -- are winning ground. But those that can marry price with purpose or simplicity with standout experiences may be best positioned for long-term growth.