U.S. Supermarkets Explained: Why Regionals Still Matter

Our Top 10 U.S. Grocers page often sparks debate—especially around why Walmart ranks first overall, while Kroger is considered the largest U.S. supermarket. The confusion usually comes down to definitions. Walmart, Costco, and Target all sell groceries at enormous scale, but technically they are not supermarkets. They operate under different retail formats, even though grocery is a major part of their business.

That distinction matters because the supermarket industry developed long before today’s retail formats began to blur. For decades, supermarkets dominated food retail, and they were overwhelmingly regional businesses. That regional structure wasn’t accidental. It emerged from practical, on-the-ground realities that shaped how grocery companies could operate efficiently.

Historically, supermarkets organized themselves regionally for several key reasons:

1. Local preferences: Product assortments had to reflect regional tastes, cultural differences, and seasonal availability.
2. Distribution networks: Regional supply chains reduced transportation costs and allowed for fresher, more reliable delivery.
3. Competitive landscape: Grocers competed primarily with nearby chains, making local market knowledge a major advantage.
4. Regulatory factors: Food, labor, and alcohol regulations varied widely by state and municipality.
5. Real estate costs: Site selection, store size, and operating economics differed dramatically from one region to another.

Over time, retail formats expanded and converged. Supermarkets added services, mass merchants pushed deeper into food, and specialty and warehouse models scaled nationally. Even so, today’s grocery market still operates as a complex, regionally structured system shaped by distribution infrastructure, banner portfolios, and localized merchandising strategies. Regional supermarket operators remain central players across the U.S.

Our ‘Major U.S. Supermarket Companies by Region’ list below breaks out the major supermarket companies across six core U.S. regions. We use this six-region model because it reflects how grocery executives, consumer packaged goods (CPG) brands, brokers, distributors, and suppliers still think about the market in practice. While many corporations operate across multiple regions, the banners shown here represent dominant regional presence rather than an exhaustive inventory of every legacy brand.

To make the structure clearer, we organize each region by corporate parent company, with individual store banners listed beneath. This mirrors how the industry actually functions: corporate entities manage strategy and buying relationships, while banners are what shoppers recognize at store level.

This regional framework helps grocery professionals plan distribution, merchandising, and account coverage, while also providing clearer context for understanding the U.S. food retail landscape.

Finally, we acknowledge that some of the largest food retailers do not fit the traditional supermarket definition. Mass merchants, warehouse clubs, and specialty grocers account for significant grocery sales volume, even though they operate under different models. These companies are outlined separately below the regional list.