Food retail stocks outperform the market in first half
The stocks of most publicly traded food retailers and wholesalers soared at double-digit rates in the first half of 2025, outpacing the major stock indices amid a tumultuous six-month roller coaster of trading.
As the market bounced up and down based in part on the Trump Administration’s announcements about proposed new tariffs on imported goods, along with concerns about a potential economic slowdown, many food retailers provided a safe haven for investors.
Dollar General led the pack with gains of 51.1% in the six months through June 30, closing at $115.30. In fact, the company led all stocks in the S&P 500 Index through the first half of the year, as detailed in a recent Wall Street Journal report.
“They aren’t quite the opposite of AI, but they are the opposite of the growth story that investors are warming up to once again,” the newspaper said.
Shortly before the end of the first half, the S&P hit a new record high, buoyed by signs of progress in international trade talks and expectations of lower interest rates. The index had plunged sharply in April after the administration first unveiled plans for sweeping tariffs that would have imposed large levies on goods from almost all countries.
Dollar General’s stock got a boost from its own first-quarter performance as well, which beat analysts’ expectations, and from the company’s improved outlook for its full-year results. Likewise, Dollar Tree also had a strong first quarter and raised its forecast for the full year, helping drive its share price up 31% for the first half, to $99.04, despite its warning that increased tariffs would drive down its second-quarter profitability.
SpartanNash saw its shares close the first half up 43.6%, to $26.49, after the company agreed to be acquired by C&S Wholesale Grocers for $26.90 per share, or about $1.77 billion.
Gainers outpace decliners
Other U.S. food retailers posting strong gains in the first six months of 2025 included:
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Sprouts Farmers Markets, up 29.1%
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BJ’s Wholesale, up 20.4%
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Village Super Markets, up 20.1%
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Kroger Co., up 16.4%
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Ahold Delhaize, up 12.4%
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Albertsons Cos., up 9.2%
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Walmart, up 8.7%
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Costco Wholesale, up 8.2%
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Weis Markets, up 6.8%
Canadian companies also had a strong first half, where dollar store chain Dollarama also led all food retailers with gains of 36.3%. Empire Co., the parent of the Sobeys chain, saw its shares rise 28.4% on the Toronto Stock Exchange, and Loblaw Cos. and Metro Inc. were up 18.5% and 18.4%, respectively.
Most of the gainers in both the U.S. and Canada reported ongoing sales growth and a cautiously optimistic outlook, with a close eye on inflation and consumer spending but with little exposure to the potential cost increases from new tariffs.
A handful of U.S. food retailers saw their share prices decline in the first half, including Target Corp., which was down 27.3% as the company continued to see its sales and profits erode in the first quarter. The company also lowered its sales and profit outlook for the year as traffic slid and the company struggled with distribution issues.
Grocery Outlet, meanwhile, saw its stock fall 21.6% after the company reported ongoing issues related to a technology implementation and eroding profit margins. Wholesaler UNFI was down 15.3% for the six months, tumbling after the company last month reported a cyberattack that forced it to shut down its computer systems, including its electronic ordering and invoicing technology. Last week the company said it had restored its core systems, nearly three weeks after it first reported the incident.
Ingles Markets and Natural Grocers by Vitamin Cottage were both down a little more than 2% through June 30.