Grocery-anchored shopping centers are still attracting investor interest, but the sector is becoming more selective as consumer behavior splits along value and quality lines. Recent research points to a market where discount grocers and premium fresh-focused chains are gaining the most momentum, while traditional supermarkets are losing some of their edge.

That shift matters for retail landlords because the grocery tenant is playing a bigger role in overall center performance. Shoppers looking to stretch their budgets are driving growth at chains such as Aldi and Grocery Outlet, while higher-income or specialty-focused customers are helping operators like Trader Joe’s, Whole Foods and Sprouts post stronger traffic and expansion numbers. In other words, not every supermarket is delivering the same draw anymore.

Centers with the right kind of grocer are still outperforming. JLL found grocery-anchored properties posting lower vacancy than centers without a grocery tenant and commanding a rent premium, largely because frequent, necessity-based visits help support surrounding small-shop space. That traffic can improve leasing, reduce turnover and strengthen the tenant mix across the property.

Investors have noticed. Transaction volume for grocery-anchored retail jumped 42% in 2025 to nearly $11 billion, and institutional buyers increased their share of acquisitions to 27%, the highest level in more than a decade. But the takeaway is that capital is no longer treating grocery-anchored retail as a uniform safe haven. Performance now depends much more on whether the anchor fits the spending habits of the customer base it serves.