Despite some supermarkets being national and well known—Whole Foods, Kroger and Costco, for example, many that are regional dominate their different parts of the country with different strategies, from bulk shopping and low prices to fresh produce. As food inflation has slowed, Placer.ai looked at five regional chains that have experienced consistent growth in the first half of 2023 and are expected to continue their strong performance into the second half and beyond. Others may learn from what's encouraging these chains' healthy foot traffic and loyalty.

Stater Bros. Market, based in Southern California's San Bernardino, opened as far back as the Great Depression but has managed to expand to more than 170 locations in its state. Known for its family-friendly shopping experience with relatively small stores near distribution centers, that has helped its products remain local and fresh. Monthly visits grew this year versus last year despite several stores closing. And the year-over-year visits also increased; for example, visits per venue rose 4.9% in June, 7.7% in July and 6.6% in August in 2023 versus 2022. The conclusion is that the chain has been able to keep its loyal visitor base and detour those who visited shuttered stores to other Stater Bros. markets.

Smart & Final is another California-based chain located in Commerce, Calif., and one of the oldest warehouse grocery chains in the country. It says on its website that it has grown through mergers and acquisitions, with the oldest of the combined companies, Hellman-Haas Grocery, founded in 1871 in Los Angeles. It was one of the first to offer cash and carry or the option for customers to take home their groceries after shopping rather than have to wait for the grocery to deliver them to their door. It has also been committed to more innovation and improvements, the report said. For example, shoppers can take advantage of its warehouse-style shopping options without a membership cards at its Extra! Stores. The chain outperforms the California grocery category and wider national sector on a YoY monthly visit basis as its shoppers prioritize doing so in bulk to save where possible. 

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