H-E-B Topples Amazon

The Lempert Report
February 08, 2023

And talking about prices, Dunnhumby just released their retailer Preference Index. Before we talk about the top 10, the ones that had the best value proposition, H-E-B, Costco and Amazon, the report says, they're most aligned to what matters most to consumers. They provide the best combination of customer benefits while minimizing customer costs. This year's R P I is based on five preference drivers, price, promotions, rewards, that's one, quality, speed and convenience, digital and operations. And the top 10, yay, H-E-B took the number one spot from Amazon, followed by Costco, number two, then Amazon wegman, Sam's Club, Market Basket, and Amazon Fresh, followed by Trader Joe's at number eight, WinCo at number nine, and BJ's at number 10. So when we look at surveys like this, my hope is that other retailers really look at it who didn't make the list, and they learn from it. What do you think are, are retailers looking at these things and saying, Hey, why is H-E-B number one, and I'm not 

Sally: Well, I hope so. If they're in it for the long game, then they are paying attention and they are paying attention that those are the most important drivers, the most important preferences are price, you know, price and what they're getting for the quality in proportion to the price. And, H-E-B is a retailer that does that very, very well. Costco is probably doing better because, the whole warehouse club category seems to be, there's three of them in the top 10, I think, this year. And so, you know, people are finding deals. There is what I suspect. And so, yes, other retailers need to be paying attention. 

Phil: Matt O'Grady, who's president of Chicago based Dunhumby America, said, we believe this report can serve as a blueprint to help grocers improve their competitive positions while providing key findings for marketing and consumer preferences. He goes on to say that retailers have two things in common leading retailers. They've displayed superior ability to navigate supply chain issues by improving their ranking in the operations pillar, which measure out-of-stock perceptions among other things. And Wegmans. Yay. Danny and Colleen, you cemented your position as the best on quality, and you've led in that preference driver in every R P I since 2017. So, good for Wegmans as always.