Trader Joe’s leads again in customer satisfaction as overall retail satisfaction declines

Trader Joe’s kept its customer satisfaction score steady during 2020, which is more than most other retailers can say.

Trader Joe’s topped the supermarket industry – and all retailers – with a stable score of 84, according to the American Customer Satisfaction Index (ACSI) retail and consumer shipping report 2020-2021. The overall customer satisfaction score declined 2.3% to a score of 75.5 (out of 100), which is the lowest ACSI score posted for the retail sector since 2015. 

ACSI covers six retail industries – department and discount stores, specialty retail stores, health and personal care stores, supermarkets, Internet retail, and gas stations – as well as consumer shipping and the U.S. Postal Service. 

Among the non-gas station and shipping categories, not one escaped the trend of declining customer satisfaction in 2020. Following is a review of performance in each category.

Internet retail
For 2020, online retail lost the most ground among all retail categories, tumbling 3.7% to an ACSI score of 78. Nordstrom captured the industry lead despite retreating 1% to 81. In second place, Costco (down 1%), Etsy (down 2%), and Newegg (down 1%) all deadlocked at 80. Former industry leader Amazon fell 5% to an all-time low score of 79.

With a stable score of 78, Target was the only e-commerce retailer to buck the downward ACSI trend. Walmart and Sears remained the category’s bottom-dwellers. Walmart fell 1% to 73, while Sears dropped 1% to 72.

Department and discount stores
Following two years of customer satisfaction stability, the department and discount store industry retreated 1.3% to an ACSI score of 75. Costco remained in first place for a fifth straight year, despite declining 2% to a score of 81.

Nordstrom (including Nordstrom Rack) is second, up 1% to 80, while Dillard’s is third, up 1% to 79. Kohl’s and TJX (Marshalls and TJ Maxx) are next in line, both slipping 1% to 78, while BJ’s Wholesale Club (down 3%) and Macy’s (down 1%) follow closely behind at 77 each.

Among the low-end performers, Dollar Tree stumbled 4% to an all-time low of 74. Dollar General fell 3% to share the bottom of the category with Walmart (unchanged) at 71.

Specialty retailers
Customer satisfaction with specialty retail stores receded 1.3% to an ACSI score of 77, marking the category’s lowest point since 2015. L Brands topped specialty retailers for a seventh straight year, slipping 1% to 81. Hobby Lobby and Nike both debuted in second place at 80, joined by Sephora (unchanged).

Among the biggest decliners, Ascena’s ACSI score plunged 5% to 76, while customer satisfaction uniformly sank 4% for the three major home improvement retailers: Menards (77), Home Depot (75), and Lowe’s (75). J. Crew received a first-time ACSI score of 75, the lowest among apparel chains, while Ace Hardware entered the Index at 74. At the bottom, Williams-Sonoma scored 73 in its debut ACSI appearance, while GameStop continues to rank last among all specialty retailers, plummeting 4% to an all-time low score of 72.

Drug stores
For a third year, customer satisfaction with the drug store industry weakened, dropping 1.3% to an ACSI score of 75. A group of smaller drug stores remained the industry leader while falling 4% to 79. CVS is next, steady at 77 for the third straight year, followed by Kroger, which slid 3% to a score of 76.

Walgreens stayed below the industry average, inching back 1% to 74, followed by Walmart, slipping 1% to 73. Rite Aid shared the bottom of the industry with Albertsons Companies, both declining 4% to 72.

Supermarkets
After four years of near-stable customer satisfaction, the supermarket industry plunged 2.6% to 76. Following top performer Trader Joe’s (84), four companies tied for second place with scores of 82: Costco (down 1%), H-E-B (down 2%), Publix (down 1%), and Wegmans (down 2%). The remaining top-tier performer from 2019, Aldi, slipped 4% to tie with a stable Sam’s Club at 80. Albertsons Companies fell 5% to 71, tying for last place with Walmart, which declined 3%.

Consumer shipping
Customer satisfaction with consumer shipping slid 1.3% to an ACSI score of 76, representing an all-time industry low. FedEx remained in the lead despite declining 3% to 78. UPS faded for a third straight year, dipping 1% to 75. The U.S. Postal Service’s (USPS) Express and Priority Mail rose one point to 73.