Phoenix/ Food & Drinks
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Published on April 08, 2024
Fry's Food Stores Dominates Phoenix Market, Walmart's Share Drops Amid Kroger-Albertsons Merger TalksSource: Google Street View

Fry's Food Stores is tightening its grip on the Phoenix grocery scene, elbowing out competitors with a burgeoning market share, based on a recent study by Chain Store Guide. Their latest scorecard shows Fry's, a Kroger Co. subsidiary, bumped up its share by over two points, clocking in a commanding 28.32% of the bustling Valley market.

While Fry's sales surged to almost $5.6 billion in 2023, up from $4.5 billion in 2022, rivals like Walmart watched their hold slip. Shedding a significant slice of the pie, Walmart's market presence diminished from 19.84% to 17.83% in the shadow of Fry’s growth, per the Business Journal report.

Not content to leave all the spoils to Fry’s, other chains like Sprouts Farmers Market and Aldi have been making their own advances. Newcomer Aldi clinched a spot in the Chain Store Guide rankings for the first time since its 2020 debut, edging into the fray with a 0.4% market share. Sprouts, riding the wave of a 30% yearly sales jump to rake in $668 million, has left its own green imprint on the Phoenix grocery landscape, as detailed in the report.

The tremors from this market share shake-up come amidst a proposed mega-merger, as Kroger Co. and Albertsons are in the midst of negotiating a multibillion-dollar deal that could further consolidate their influence in the Valley. Together, these giants hold control over No. 1 Fry’s, No. 4 Safeway, and No. 7 Albertsons, accumulating an eye-watering potential market share of 42%, according to insights from the ABC15 report.

Despite facing a beleaguered defense from federal and state watchdogs, the Kroger-Albertsons empire marches on, potentially signaling seismic disruptions in next year’s grocery game. As Phoenix's grocery wars heat up, consumers are left watching as the heavyweights jockey for their dollars, and this competition is anything but canned.