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Investors appear to have flocked to the relative safety of traditional grocery stocks during the turmoil of the first quarter, as most operators saw their share prices rise.

While the overall stock market was down 4.63% in the first three months of 2025, grocery stocks including Kroger, Albertsons, Ahold Delhaize were up in double digits in the first three months of the year.

“Mostly what’s happened has been a rotation into perceived safety,” said Scott Mushkin, founder and managing partner of R5 Capital.

Investors concerned about a potential recession and downturn in consumer spending have moved their money out of some stocks they see as riskier bets, and into the relatively stable performance of the grocery industry, he said.

That sentiment could change, however, Mushkin said, as traditional operators will continue to face headwinds from competitors such as Amazon and Walmart, especially in center store categories where industry volumes have been under pressure. The pressure on center store sales could also increase amid an ongoing focus on healthy eating, he said, although this trend also could benefit supermarket fresh departments such as produce.

“The outlook is tough,” said Mushkin, who noted that investors typically pull back out of safer stocks such as supermarket companies once they perceive that the overall market is back in growth phase.

Top grocery stock performers in Q1

• Kroger is up about 10% year-to-date, despite concerns about the company’s future direction in the wake of the failed merger attempt with Albertsons and the forced departure of longtime CEO Rodney McMullen. Mushkin has a “sell” rating on the stock, however, citing the challenges the company faces to drive earnings growth

• Albertsons was up about 11.6% in Q1

• Ahold Delhaize was up 14.6%

• Sprouts Farmers Market was up 19.7%, as the company continued to expand and stands to benefit from the trend toward healthier eating

• SpartanNash was up about 9.8%

• Weis Markets was up about 12.6%

• BJ’s Wholesale was up 27.4% amid a newly aggressive growth strategy and ongoing strong financial performance

• Costco was up about 3.4%

Not all food retailers saw their shares climb in the first quarter—Walmart was down slightly, and Target was down significantly as the company faced backlash from consumers over policy changes and the company predicted flat sales for 2025.

A recent analysis by Morningstar found that value stocks overall outperformed growth stocks in the first quarter, when the market entered a “correction” phase after peaking in February.

“Value stocks, which had been left in the dust by the big rally in tech, rose during the first three months of the year, with gains among dividend stocks, consumer defensives, and healthcare names,” Morningstar said.