New tariffs on food related imports are shaking up expectations for US Food Retailers & Supermarkets, as higher costs and possible retaliation ripple through supply chains ahead of the August 19 start date. This disruption can create mispricing, which matters if you are looking for opportunity or trying to avoid trouble. This article explains the tariff story and then walks through three stocks from our screener that appear positively exposed to this news.

The three stocks below are just a starting sample from this tariff angle. The full screen surfaced 14 more US Food Retailers & Supermarkets with equally compelling narratives that are not covered here. If you want to identify your own highest conviction ideas from this group, head straight into the US Food Retailers & Supermarkets screener.

Grocery Outlet Holding (GO)

Overview: Grocery Outlet Holding is a discount grocery retailer that partners with independent operators to run its stores, offering a mix of perishable items like dairy, produce, meat and seafood alongside non perishable groceries, household goods and beer and wine across multiple US states.

Operations: Grocery Outlet generates about US$4.7b in revenue from retail grocery stores in the United States.

Market Cap: US$980 million

Grocery Outlet Holding sits at the intersection of deep discount food retail and a consumer base that is highly price conscious, which may become more important as new tariffs lift costs on imported goods and push shoppers toward domestically sourced bargains. The stock is priced below some estimates of fair value and the business is still unprofitable, so this represents a mix of potential upside signals and clear execution risk. Management is refreshing the C suite, focusing on merchandising and cost controls, while the independent operator model gives stores flexibility to react quickly to local demand. With goodwill impairments, recent index removals and funding pressures already in the recent past, the key question is how much of this tariff driven opportunity is actually reflected in Grocery Outlet today.

Grocery Outlet’s tariff angle could be masking a sharper valuation story, especially with a refreshed C suite and a still unprofitable model in play. Get the full context in the analysis report for Grocery Outlet Holding

Build your own tariff resilient grocery shortlist

Grocery Outlet Holding and the two other stocks in this article all came out of a single screener, but your best ideas will come from filters that fit how you invest. Use our flexible Screener to mix valuation, quality, balance sheet and risk filters, or lean on the curated themes in our Investing Ideas.

Dollar General (DG)

Overview: Dollar General is a discount retailer that runs thousands of small box stores across the United States, selling low priced food, beverages, household staples, seasonal items and basic apparel that cater to value focused shoppers in mostly rural and small town communities.

Operations: Dollar General generates about US$43.1b in revenue from its retail store operations.

Market Cap: US$27.9b

Dollar General provides exposure to tariff driven inflation without leaving the value aisle, as many of its consumables and household staples are sourced domestically and its direct imports are a relatively small slice of purchases. The company focuses on rural and underserved markets, updating stores and expanding private label ranges. At the same time, store growth could eventually feel crowded, digital offerings are still catching up and tariffs can still filter through via suppliers. The interest lies in how this mix of value pricing, measured growth expectations and changes in earnings comes together as trade frictions increase.

Dollar General sits where tariff driven inflation and value pricing may be starting to decouple. See how expectations around growth, margins and store expansion stack up in the analyst forecasts for Dollar General and what could upset that balance next.

Albertsons Companies (ACI)

Overview: Albertsons Companies runs one of the largest supermarket and drugstore networks in the United States, with banners such as Albertsons, Safeway, Vons and Jewel-Osco offering groceries, pharmacies, fuel, general merchandise and digital shopping options.

Operations: Albertsons Companies generates about US$82.4b of its US$82.4b in revenue from its core retail operations, with the remainder from other activities, almost all within the United States.

Market Cap: US$5.8b

Albertsons Companies is squarely in the spotlight as new tariffs push shoppers toward domestically sourced food, since more than 90% of what it sells is procured in the US and management has already built playbooks to push back on supplier cost increases, switch sourcing and use own brands when needed. At the same time, thin current margins, very high debt, recent earnings setbacks and board turnover keep risk firmly on the table. This stock is notable because tariff supported demand, productivity programs, retail media and a growing digital and pharmacy footprint are intersecting with a discounted share price and a high but thinly covered dividend. The key question is how that trade off looks once tariff effects and restructuring costs fully play through.

Tariff supported demand, productivity efforts and a high but thinly covered dividend suggest that the Albertsons Companies story may be more about trade offs than trouble. Get the fuller picture in the 2 key rewards and 4 important warning signs

Seeking Alternatives Before The Crowd

Fresh tariff angles can move fast. Some stocks are building momentum while others risk getting caught dropping back to earth. Review these under the radar ideas while it still matters and decide whether they fit your strategy.

• Spot companies building income streams by tapping into the 8 dividend fortresses before yields change and the crowd starts chasing the same payout stories.
• Look for quality at a fair entry point with the curated 52 high quality undervalued stocks before any momentum shifts valuations away from your comfort zone.
• Consider sturdier portfolios by running the 83 resilient stocks with low risk scores and see which stocks remain under the radar for now while risk scores meet your criteria.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.