Trader Joe’s, Sprouts gain ground in Phoenix grocery market as competition heats up

Article originally posted on Phoenix Business Journal on April 18, 2025

In Phoenix’s ultracompetitive supermarket industry, two grocery chains – Trader Joe’s and Sprouts Farmers Market – saw their share of the market grow more than other brands this past year.

California-based Trader Joe’s, which added three new stores in the Valley in the past 12 months, saw the biggest year-over-year increase in market share and in local revenue, according to the just-released 2025 market share study from sales tracking firm Chain Store Guide. The increase in stores and sales moved it from No. 12 to No. 11 in the Valley’s rankings.

Trader Joes increased its local revenue 32.5% from 2023 to 2024 up to $397 million, according to Chain Store Guide.

Phoenix-based Sprouts (Nasdaq: SFM), which came in at No. 8 in top market share, similarly added three new stores to the Valley in 2024 and increased its local sales to $753 million, a 12.7% year-over-year increase.

Chain Store Guide determines market share by looking at each company’s presence in the market and annual sales. The newly published data reflects total 2023 sales through Dec. 31.

Trader Joe’s was the only company to see its market share increase enough to move a spot compared to last year’s rankings. Sprouts, the Phoenix-based specialty grocer, increased its market share from 1.53% to 1.96%, according to Chain Store Guide.

The latest report showed that Fry’s Food Stores, the local Kroger Co. (NYSE: KR) brand, has the largest market share out of all grocery chains operating in the Phoenix area with 28.18%, which was down slightly from the 28.32% the chain had in 2024.

Walmart, Costco, Safeway and Bashas’ rounded out the top five in supermarket market share in the Valley.

The Phoenix-area grocery sector (including supermarkets, mass merchandisers and warehouse clubs) clocked more than $20.3 billion in revenue in 2024, according to the latest data from Chain Store Guide. That accounted for an increase of $623 million, or 3%, from the previous year’s sales.

In 2025, there’s potential for major shifts in the Valley’s grocery landscape. Target is looking to open multiple stores in the metro area in 2025. There are also Fry’s, Safeway, Trader Joe’s and Sam’s Club locations under development in highly anticipated retail sectors.