image of Oregon state flag

The supermarket industry in Oregon has been experiencing consistent growth, projected to reach an estimated $11.7 billion this year. Contributing factors include population increases in key market segments and changing demographics.

The Portland area remains one of the strongest in the state and often ranks among the top 20 grocery markets in the country.

The recent economic climate, marked by inflation, rising food prices and fluctuating consumer spending, has impacted the local grocery industry. When looking at foot traffic trends, it appears consumers are making more – but shorter – trips to the store, which could indicate a shift toward more efficient, needs-based shopping.

With shoppers focused on promotions and discounts, chains such as Grocery Outlet are among those benefitting.

Oregon’s overall market is considered highly competitive, with retailers such as Fred Meyer, Safeway and WinCo Foods maintaining strong shares. However, regional grocers including New Seasons Market, Market of Choice and others have found success catering to specific consumer groups.

Many of the new entrants reflect retailers with business positioning strategies aimed at capturing distinct customer segments. Some are focusing on specific ethnic demographics or premium and local offerings, while others are prioritizing value and affordability.

El Torito Supermarket

In March, El Torito, a Mexican-inspired supermarket, opened in the Central Oregon town of Madras, taking over the space previously occupied by Erickson’s Thriftway, which was shuttered last fall. With more than a third of the community coming from Latino descent, City Administrator Will Ibershof noted there is a built-up demand for more options in Madras.

The store features Mexican décor and offers a wide selection of Mexican items. The new location is the seventh in the state, including two in Salem and one each in Eugene, Klamath Falls, Lincoln City and Woodburn.

New Seasons Market

The store Portland-based New Seasons Market opened April 9 in the Tanasbourne Town Center in Hillsboro is its second in the city and 22nd overall.

image of New Seasons Market exterior in Hillsboro, Oregon
New Seasons Market has opened four new stores in the past three years, including Palisades in Lake Oswego (July 2022), Main Street in Vancouver (October 2023) and Milwaukie Marketplace (March 2024).

Located at 10940 N.E. Evergreen Pkwy., the new store serves as one of the primary full-service grocers in an area that features many local businesses. The grocer’s other Hillsboro location is at Orenco Station, where it opened in 2001.

The new store occupies 27,000 square feet, employs about 120 people and provides a diverse range of products and offerings.

New Seasons Market has opened four new stores in the past three years, including Palisades in Lake Oswego (July 2022), Main Street in Vancouver (October 2023) and Milwaukie Marketplace (March 2024).

1st Choice Market

1st Choice Market is slated to open this summer in Lincoln City’s Lighthouse Square, along the state’s central coast.

Part of the URM cooperative family, the full-size market spans 35,000 square feet and will cater to a broad range of grocery needs. It will feature a full deli, prepared foods, bakery, butcher shop, traditional groceries, a large bulk section, wine and craft beer.

Auston Emami, whose family owns the shopping center, noted they had been trying to attract a larger grocer to open in the space (a former Bi-Mart store) for years. The building has undergone extensive remodeling.

“Bi-Mart didn’t have any coolers, or the power and plumbing needed, so we have spent the past several months making upgrades and adding some warehouse space. There is exterior work that was needed as well to the building and the entire shopping center,” he said.

Hong Phat Supercenter

Less than a year after its debut in Portland’s Montavilla Eastport Plaza neighborhood, this expansive 154,000-square-foot Hong Phat location has quickly become a significant retail presence and a central community hub.

Hong Phat is one of several Asian markets that have opened recently in the Portland area, reflecting the growing number of Oregonians who identify as Asian. Southeast Portland boasts Fubonn Shopping Center, Shun Fat Supermarket, H Mart and other smaller Asian grocers.

image of checkout lanes at Hong Phat store in OregonBrandon Wang, founder and CEO, said there was a need in the area to offer a new concept featuring both a wholesale and retail component. He decided the former Walmart was the ideal spot for his fourth Hong Phat location.

The grocery store occupies about 125,000 square feet. In addition to featuring Asian foods, the Hong Phat Supercenter has a wide section of Latino, European, Middle Eastern and American groceries. It also features a food court and a section where small grocers and wholesalers can buy in bulk.

Wang said the aim is to offer items that shoppers cannot get at a typical American supermarket.

“We wanted a place large enough where we could offer our customers a little bit of everything under one roof and in a range of quantities, whether shopping for themselves or a business,” he said.

Hoang Nguyen, business partner, echoed that, saying the goal was to create a gathering place that offered more than just groceries.

“We wanted to give people in the local community somewhere to come together and share an experience,” he said. “Bringing small businesses into the offering seemed to make sense and allows people to get their needs taken care of in one stop.”

[RELATED: Populous West Home To Dynamic, Diverse Grocery Market]

Senior Content Creator Carol joins The Shelby Report with more than 25 years writing for B2B magazines that cover the drugstore and supermarket industries. A Rutgers graduate, she earned her B.A. degree...

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