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Reasons to Read

Welcome to Analyst Corner! Every Sunday, a member of the Coresight Research team discusses upcoming or recent research and their thoughts on interesting topics in their area of expertise.

This week, Charlie Poon, Analyst, explores current investments in the artificial intelligence (AI) and GenAI (generative AI) spaces, as well as investments in the computing requirements for AI-powered applications.

Analyst Corner also highlights our key research from the past week and upcoming reports to look out for, so you don’t miss out.

Other relevant research:

Read previous Analyst Corner reports, including last week’s report, which covers grocery retailing in the US, including our growth projections for this year, current market factors and what we expect for the grocery sector moving forward.
US Online Grocery Survey 2025: Full-Basket Orders Increase as Delivery Retains Its Dominance

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Reasons to Read

Stay up to date on the latest changes in the UK retail store landscape, where new store openings continue to outpace closures in 2025.

Read this report to discover answers to these and other questions:

Which retailers have driven the increases in openings and closures this week, and what’s behind these moves?
Which retailers are still growing their store networks despite a challenging retail environment?
How do store openings and closures in 2025 compare with 2024, and what are the main trends driving the year-on-year shifts?

Companies mentioned in this report include: Flying Tiger Copenhagen, Frasers Group, HMV, Intimissimi, Miniso, Next, ProCook and The Perfume Shop.

Data in this report include: weekly totals of UK store closures and openings for 2025 and 2024; retailer-level breakdowns of announced versus confirmed closures/openings.

Other relevant research:

The full collection of Store Tracker reports, including our US-focused series
The US and UK Store Tracker Databank is the definitive resource for information on store openings and closures by sector in the US and UK retail industries.
The Corporate and Financial Developments Databank includes details of management changes, financial guidance updates, retail and tech layoffs and capital raised by major retail companies.
The Retail Bankruptcies Databank details bankruptcies of US and UK retail companies, restaurants and gyms since March 2020.

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Reasons to Read

Discover which retailers are behind the rise in US store closures in 2025—and which ones have continued to expand.

Read this report to discover answers to these and other questions:

Which retailers led the latest closures and openings across the US?
How do store closure and opening trends in 2025 compare with those in 2024, and what do these findings indicate?

Companies mentioned in this report include: Ace Hardware, The Children’s Place, Gala Foods, Hobby Lobby, Jack & Jones, Kwik Trip, Lululemon Atheltica, Meijer, Olfactory NYC, Rosa Clará, Sephora USA, Tecovas, Toys“R”Us, Walmart and Whole Foods Market.

Data in this report include: weekly totals of US store closures and openings for 2025 and 2024; retailer-level breakdowns of announced versus confirmed closures/openings; total store counts by retailer; total US retail bankruptcies year to date.

Other relevant research:

The full collection of Store Tracker reports, including our UK-focused series
The US and UK Store Tracker Databank is the definitive resource for information on store openings and closures by sector in the US and UK retail industries.
The Corporate and Financial Developments Databank includes details of management changes, financial guidance updates, retail and tech layoffs and capital raised by major retail companies.
The Retail Bankruptcies Databank details bankruptcies of US and UK retail companies, restaurants and gyms since March 2020.

You are currently viewing a preview of this report.

Please select an access option to view the full report. Hide Options - Show Options +

Get unlimited access to all our research with one of our subscription plans.

View Subscription Plans

This document was generated for

Reasons to Read

Understand how AI and data are reshaping the grocery experience—from discovery to decision-making—while breaking down silos to build future-ready organizations. This is our fourth and final daily report from Groceryshop 2025. We will further discuss takeaways from Groceryshop 2025 in our wrap-up report, publishing soon.

Read this report to discover answers to these and other questions:

How are AI, social platforms and agentic tools transforming how shoppers discover and decide what to buy?
What organizational changes are required to scale AI successfully, and why is culture often the biggest barrier?
What are the most important trends and takeaways from Groceryshop 2025, including shifts in health, loyalty, retail media and agentic commerce?

Companies mentioned in this report include: Ahold Delhaize USA, Meta, PIM Brands, Niagara Bottling, Publicis Sapient, Giant Eagle, Southern Glazer’s Wine & Spirits, Walmart, Colgate, Poppi, Scrollmark, MUSE, Sam’s Club, Albertsons, Loblaw, Ocado, Danone and Chobani.

Access all of our coverage of Groceryshop 2025.
Visit the Coresight Research Food, Grocery and CPG Retail Hub to explore sector data, reports and company profiles.

Executive Summary

Coresight Research is a research partner of Groceryshop 2025, which took place during September 28–October 1in Las Vegas, Nevada. Groceryshop is an annual conference that brings together global retailers, brands and technology leaders to discuss trends, innovations and strategies shaping the future of grocery and consumer packaged goods (CPG).

In this report, we present key insights from the fourth and final day of Groceryshop 2025, which mainly covered the themes of Understanding, Captivating and Retaining Shoppers and Building Unified and Future-Ready Organizations. We also include highlights from the Groceryshop Key Takeaways session, which summarized the most important learnings from the four-day event.

Coresight Research Analysis

1. Understanding, Captivating and Retaining Shoppers

AI-Driven Discovery and the Shopper Journey: Shoppers are discovering products in new ways—through a mix of physical stores, social media and AI-powered tools. While the majority of discovery still occurs in-store, tools like TikTok and AI assistants often influence choices before people make a purchase in person. Retailers must ensure their product data is accurate and discoverable so AI tools can recommend them correctly. Looking forward, discovery will be reshaped by new retail media strategies, wearables that enhance shopping in real time and AI agents that guide purchase decisions.

2. Building Unified and Future-Ready Organizations

Breaking Down Data Silos for Scalable AI: AI initiatives often fail because company data is fragmented across teams. To scale successfully, businesses must unify data around customer needs, adopt shared Key Performance Indicators (KPIs) and treat data as a collective resource. When organizations harmonize their systems, personalization improves, trust increases and revenue grows. Leaders agreed the most challenging part is not technology but culture—getting teams to share information and embrace AI literacy across the company.

3. Groceryshop Key Takeaways

Shoppers want healthier products while staying mindful of prices. GLP-1 drugs are altering purchasing habits and loyalty, while affordability continues to drive decisions.
AI agents are becoming central to grocery shopping, pushing brands to consider “agentic engine optimization” (AEO). Shoppers already trust AI suggestions nearly as much as influencers.
Creators and influencers amplify trends in real time, and AI makes it easier for shoppers to act instantly on those trends. This creates opportunities for brands to capture rapidly shifting demand, with startups like Scrollmark using agentic tools to compress the path from social media awareness to transaction.
Retail media is at an inflection point, moving beyond traditional trade spend toward full-funnel activation that links digital advertising with in-store engagement. Examples include screens, audio and sampling inside stores. However, execution depends on store associates, and programs must be designed with operational realities in mind to avoid undermining the store experience.

Introduction

Coresight Research is a research partner of Groceryshop 2025, which took place during September 28–October 1 at Mandalay Bay in Las Vegas, Nevada. Groceryshop is an annual conference that brings together global retailers, brands and technology leaders to discuss trends, innovations and strategies shaping the future of grocery and CPG.

The sessions at Groceryshop 2025 are categorized into four major themes, which we presented in our guide to the event:

Efficient and AI-Powered Grocery Operations
Understanding, Captivating and Retaining Shoppers
The Next Frontier for Retail Media (and New Revenue Streams)
Building Unified and Future-Ready Organizations

Groceryshop 2025 Day Four: Coresight Research Insights

1. Understanding, Captivating and Retaining Shoppers

AI-Driven Discovery and the Shopper Journey

Product discovery in grocery retail is going through a major transformation. Where once shoppers relied primarily on in-store visibility and word-of-mouth, discovery today is increasingly hybrid, spanning physical aisles, social platforms and emerging AI-powered platforms. While the store remains the dominant channel, the shopper journey is now fluid and agentic. Social media and AI tools create new points of entry, while in-store experiences continue to convert curiosity into purchase. Retailers and brands must therefore balance traditional merchandising with AI-powered personalization, ensuring that discovery leads quickly and reliably to conversion.

Simon Rodeiro, Vice President Digital Commerce & Omni-Channel Marketing, PIM Brands, described the enduring importance of in-store shopping, noting that “70% of discovery is still happening in stores.” For categories like snacks, physical presence on an endcap or shelf remains a powerful trigger for parents and impulse buyers. Yet Rodeiro emphasized that consumer research increasingly starts elsewhere: shoppers may search AI tools for “healthy snacks” or browse TikTok for recipes, only to validate their choices in-store. PIM has responded by redefining “demand spaces” for Welch’s Fruit Snacks—shifting from being seen only as a lunchbox item to targeting busy professionals seeking on-the-go energy. This repositioning fed directly into AI-driven product content, such as “mess-free snacking” imagery, which resonated with both search queries and lifestyle needs.

Karin Chu, Vice President, Head of AI, Data Science & Analytics, Ahold Delhaize USA, shared how agentic AI is changing shopper entry points. Customers now arrive at digital storefronts via ChatGPT or other LLM-powered interfaces, often with highly contextual queries such as “birthday party for a two-year-old” or “snacks for a road trip” (and Coresight Research data show about 30% of US consumers could be using these tools for holiday 2025 shopping). These agentic journeys bypass traditional search engines and place new demands on retailers: ensuring product data is structured and discoverable, inventory is accurate and recommendations feel relevant. Chu highlighted that while AI can streamline search and substitution, human oversight remains essential. Merchandising teams and business stakeholders must guide algorithms so that results align with brand intent and customer expectations.

Alicia LeBeouf, Head of Industry, Retail & Grocery, Meta, reinforced the continuing role of social platforms as engines of discovery. She noted that shoppers often “don’t know what they need until social helps them see it,” contrasting search (which requires intent) with discovery (which thrives on inspiration). Meta’s embedded AI curates ads and content from user behavior, seamlessly guiding consumers from “I like this” moments to transactions. She also emphasized that Meta’s scale—3.4 billion daily users across Facebook, Instagram and WhatsApp—provides an unmatched opportunity for brands to meet shoppers in their discovery moments.

Despite the growing role of AI and social, Rodeiro reminded the audience that word-of-mouth remains powerful—his anecdote of his wife only buying products recommended by her mother or sister highlighted the enduring role of trust. Discovery journeys may begin in a TikTok recipe, pass through an AI assistant and end with a family endorsement before the purchase occurs at the shelf.

Looking forward, speakers identified three disruptive forces shaping how consumers will engage with products: retail media reinvention, wearable technology and agentic commerce.

Retail Media’s New Role: Rodeiro predicted a “complete reshaping” of retail media, moving away from narrow sponsored search strategies and toward upper-funnel brand-building. This opens the door for more inspirational campaigns that merge digital discovery with in-store visibility.
Wearables as Discovery Tools: LeBeouf showcased Meta’s Ray-Ban smart glasses as a glimpse of how discovery could move beyond screens. Features like real-time translation and highlighting product attributes, such as “gluten-free items,” in-aisle point to a future where wearables augment physical shopping. In such scenarios, discovery becomes interactive and personal—blending the immediacy of the store with the intelligence of digital.
Agentic Commerce: Chu pointed to recent moves by GPT—allowing direct shopping on Etsy through APIs—as a “wow moment” that signals a coming revolution. If AI agents decide what products a shopper sees, retailers and brands may lose traditional control over adjacencies and positioning. Instead, they will need to think strategically about how to “show up” in agent-driven ecosystems.

Left to right: Karin Chu, Vice President, Head of AI, Data Science & Analytics, Ahold Delhaize USA; Alicia LeBeouf, Head of Industry, Retail & Grocery, Meta; Simon Rodeiro, Vice President Digital Commerce & Omni-Channel Marketing, PIM Brands; and Sam Tomlinson, EVP, Warschawski

Source: Groceryshop

2. Building Unified and Future-Ready Organizations

Breaking Down Data Silos for Scalable AI

Most AI ambitions collapse not because of the algorithms, but because of fragmented data and culture. Companies are eager to experiment with generative and agentic AI, but without harmonized, trustworthy data foundations, those efforts rarely scale. Panelists emphasized that the challenge is not technical feasibility—most organizations can spin up pilots—but organizational fragmentation. Siloed data, duplicated systems and misaligned priorities keep AI from delivering value. To be future-ready, companies need to organize data around customer needs rather than departments, and build a culture where data is treated as a shared asset across the business.

Deepak Jose, VP & Head of Data & Decision Intelligence, Niagara Bottling, noted that more than 95% of AI initiatives at large enterprises fail to generate value, often because the data foundations are weak. He likened organizational silos to “five blind people explaining an elephant”—each part makes sense, but no one sees the whole. Jose stressed that success depends on harmonization across marketing, trade, e-commerce and retail media budgets, which currently sit in four or five separate silos. For CFOs and boards to invest at scale, leaders need unified KPIs and a single view of spend.

Courtney Trudeau, Managing Director, Technology, Publicis Sapient, illustrated the upside of getting this right with a pandemic-era example. One alcohol retailer was experiencing a surge in site traffic that failed to translate into sales. By pulling together siloed datasets, identifying micro-segments and deploying a personalization engine, the retailer unlocked 150% growth in conversions and nearly doubled revenue the next quarter. For Trudeau, this proved that unified data is not just an operational hygiene issue—it is directly tied to topline performance.

Shweta Prabhu, VP, Digital, MarTech, Enterprise Systems, Data & Analytics, Giant Eagle, described the pitfalls of fragmented approaches. Teams often copy datasets to move faster, but when enrichment happens in one silo, those updates do not flow into downstream systems. The result is “pockets of good data” coexisting with “pockets of bad data”, undermining trust. She advocated for data lakes and master data management (MDM) systems, which can increase trust in AI outputs and support decisions at scale.

Alan Wizemann, Chief Digital Officer, Southern Glazers Wine & Spirits, showed how shifting perspective can unlock progress even in highly fragmented environments. His company, which had grown through acquisitions, was saddled with 27 disparate systems. Rather than focus first on internal integration, his team reframed the supply chain data through the lens of customer needs. By exposing real-time truck inventory to customers, they not only created value externally but also justified investment internally. Wizemann noted that this “value lens” turned supply chain data—a traditionally siloed but accurate dataset—into a foundation for broader organizational change.

All panelists agreed that technology is rarely the hardest barrier. As Wizemann put it, “tech is the easiest part; culture is the hardest.” Legacy processes and siloed teams often resist sharing, clinging to “don’t play in my sandbox” mentalities. True transformation requires cultural alignment and clear value demonstration—helping teams see how shared platforms make their own jobs easier, while also supporting the bigger picture.

Speakers cautioned against “throw AI at it” approaches. Trudeau emphasized that experimentation with siloed AI is beneficial, but scaling requires enterprise-wide processes and cultural transformations. Deepak Jose compared AI literacy to electricity: “everybody will be using it.” He explained that AI education must be democratized across the organization, with experts working alongside business and IT to embed tools responsibly.

Deepak Jose, VP & Head of Data & Decision Intelligence, Niagara Bottling

Source: Groceryshop

3. Key Groceryshop Takeaways

Consumer Priorities: Health and Price

Rocquan Lucas, VP, Content, Groceryshop, emphasized that one of the event’s most consistent themes was health. Shoppers are demanding healthier products, influenced by government moves to restrict certain ingredients and by the rapid adoption of GLP-1 drugs. These shifts are not only altering consumption but also reshaping channel choices. According to Ben Miller, VP, Original Content & Strategy, Groceryshop, nearly half of shoppers who remain on GLP-1 regimens have switched their main grocery store, fundamentally disrupting loyalty. He also noted that the health trend is driving volume growth for CPG players such as Danone and Chobani, as food is increasingly framed as medicine.

At the same time, economic pressures and tariffs keep price at the forefront. Chris Walton, Co-CEO, Omni Talk, noted these are not new trends, but they are converging more visibly in 2025.

Look out for the Coresight Research Playbook on how retailers and brands should adapt to GLP-1 adoption, coming soon.

Agents Everywhere

Agentic AI permeated almost every discussion. Miller predicted a shift from SEO to “AEO” (agentic engine optimization) as AI agents become the default interface for grocery planning and shopping. Retailers and brands must now consider how their products surface in agent-driven ecosystems that integrate multiple technologies.

Lucas described Walmart and Colgate keynote examples where AI not only transformed the shopper journey but also transformed internal workflows. Walmart’s own survey found that shoppers now trust AI recommendations almost as much as they trust influencers. Internally, Lucas noted, AI is being adopted so quickly that explainability is no longer a barrier—employees already understand it and expect it.

Creators as Amplifiers

Anne Mezzenga, Co-CEO, Omni Talk, pointed to Poppi, whose founder said 80% of product innovation is planned but 10% is opportunistic—built on fast-moving cultural trends. In an agentic environment, this opportunism matters more, because agents and influencers amplify what is trending in real time. Startups are already stepping into this space: Scrollmark, the “audience winner” at Shark Reef pitch competition, uses agentic tools to move consumers from awareness on social to transaction, demonstrating how agents can compress the path to purchase.

It All Comes Back to the Stores

Despite the excitement around AI and digital, Walton insisted the store remains the backbone of grocery retail. The most impactful applications of technology will be those that solve operational pain points, such as inventory accuracy, pricing and labor productivity. Lucas noted that robotics and computer vision are advancing, citing startup MUSE, which won the Judges’ Choice award in the Shark Reef competition for its shelf-scanning and modular robotics platform.

Miller emphasized that even e-commerce growth depends on efficient stores. Ocado, often associated with pure-play automation, stressed the same point during its keynote: brick-and-mortar efficiency is foundational. This theme echoed across multiple discussions—digital commerce cannot succeed if the store is inefficient, under-stocked or poorly integrated with fulfillment systems.

Retail Media in the “Age of Reckoning”

Panelists agreed that retail media is at an inflection point. Miller described this as the “Age of Reckoning,” where grocery must move beyond traditional trade spend and embrace full-funnel activation that links digital advertising with in-store engagement. In a category where 80–90% of transactions remain physical, this means retail media must be as effective on the shelf as it is online.

Walton highlighted Sam’s Club’s RXN (Retail Experience Network), which blends branding, sampling, in-store screens and digital experiences. Similarly, Albertsons and Loblaw are layering in-store audio and digital screens for a “surround-sound” effect. These examples show how retail media is evolving from banner ads into immersive in-store ecosystems.

But panelists also warned that execution ultimately falls on associates. Walton emphasized that every new campaign, screen or sampling program is one more task for store employees. If retail media is not designed with operational realities in mind, it risks undermining rather than enhancing the store experience.

Left to right: Ben Miller, VP, Original Content & Strategy, Groceryshop; Rocquan Lucas, VP, Content, Groceryshop; Chris Walton, Co-CEO, Omni Talk; and Anne Mezzenga, Co-CEO, Omni Talk

Source: Groceryshop

We will further cover takeaways from Groceryshop 2025 in our wrap-up report, publishing soon on coresight.com.

This document was generated for

Reasons to Read

Discover how leading grocers and CPG brands are using AI, automation and unified strategies to scale profitably and shape the future of grocery.

Read this report to discover answers to these and other questions:

How are robots, smart carts and cultural change helping grocery retailers move from AI pilots to scaled transformation?
What does it take to profitably scale online grocery without making capital-heavy mistakes?
Why are retailers like Tesco turning internal tech into new B2B revenue streams?
How are loyalty and gamification evolving into commercial tools that drive monetization and frequency?
What does it mean to create a “unified demand vision” across sales, marketing and digital commerce?

Companies mentioned in this report include: Coop Denmark, Giant Eagle, IGA USA, Instacart, Loblaw, Mars Snacking, Publicis Groupe, Sam’s Club, Simbe Robotics, Tesco and The Marzetti Company.

Access all of our coverage of Groceryshop 2025.
Visit the Coresight Research Food, Grocery and CPG Retail Hub to explore sector data, reports and company profiles.

Executive Summary

Coresight Research is a research partner of Groceryshop 2025, which is taking place during September 28–October 1 in Las Vegas, Nevada. Groceryshop is an annual conference that brings together global retailers, brands and technology leaders to discuss trends, innovations and strategies shaping the future of grocery and consumer packaged goods (CPG).

In this report, we present key insights from the third day of Groceryshop 2025, which mainly covered the themes of Efficient and AI-Powered Grocery Operations, The Next Frontier for Retail Media (and New Revenue Streams) and Building Unified and Future-Ready Organizations.

Coresight Research Analysis

Efficient and AI-Powered Grocery Operations

AI and Automation in Grocery—From Experiment to Essential: Tools such as robots and smart carts have moved from small trials to large-scale use, helping retailers improve accuracy, reduce out-of-stocks and drive shopper engagement. But the biggest hurdle is not the technology—it is ensuring teams embrace it, backed by leadership support. Companies that change their culture in tandem with their technology will see the most significant results.
Scaling Online Grocery Profitably: Scaling online grocery today is not just about reaching more customers—it is about building a model that balances profitability, customer experience and long-term growth. Sustainable growth comes from disciplined investment, flexible fulfillment strategies and integrating AI across every stage of the digital journey. Speakers noted that online grocery is not a “big bang” transformation, but a step-by-step process built on testing, learning and cultural readiness.

The Next Frontier for Retail Media (and New Revenue Streams)

Retailers Becoming Technology Providers: Retailers are moving from using tech to selling it. Tesco’s Transcend is an example of how grocers can package their proven solutions and market them to peers. Success comes from offering end-to-end support and building credibility as “from grocers, for grocers.” To compete with big tech firms, these retail spin-offs must operate with the speed of a startup and a customer-first mindset.
Loyalty, Gamification and Monetization: Loyalty today goes far beyond points and discounts. When combined with gamification and retail media, it becomes a strong driver of customer traffic, shopping frequency and monetization. Retailers are finding that shoppers respond best to programs that combine transactional rewards with emotional engagement, creating a “triple win”: enjoyable experiences for customers, increased visits for retailers and added value for suppliers. By extending loyalty platforms beyond their own networks and turning them into commercial business-to-business (B2B) offerings, retailers are also carving out new revenue streams.

3. Building Unified and Future-Ready Organizations

Breaking Down Silos with a Unified Demand Vision: For large CPG companies, the challenge today is not whether to invest in digital—it is how to unify digital and physical strategies so they operate as one. Mars Snacking showed how combining physical and digital strategies into “one demand vision” helps teams work as one. Training with AI-powered tools is giving staff a baseline understanding of digital commerce. Success depends on leaders who can bridge traditional operations and new digital ways of working, making sure everyone moves in the same direction.
Creating Seamless Omnichannel Experiences: Shoppers want smooth experiences across in-store, online and mobile. Sam’s Club uses tools like Scan & Go and automated exits to cut wait times and boost omnichannel engagement, while Marzetti focuses on delivering consistent promotions across multiple channels. Both emphasized personalization as the next frontier—using rich data to make every shopping journey feel unique and convenient.

Introduction

Coresight Research is a research partner of Groceryshop 2025, which is taking place during September 28–October 1 at Mandalay Bay in Las Vegas, Nevada. Groceryshop is an annual conference that brings together global retailers, brands and technology leaders to discuss trends, innovations and strategies shaping the future of grocery and CPG.

The sessions at Groceryshop 2025 are categorized into four major themes, which we presented in our guide to the event:

Efficient and AI-Powered Grocery Operations
Understanding, Captivating and Retaining Shoppers
The Next Frontier for Retail Media (and New Revenue Streams)
Building Unified and Future-Ready Organizations

Groceryshop 2025 Day Three: Coresight Research Insights

1. Efficient and AI-Powered Grocery Operations

AI and Automation in Grocery: From Experiment to Essential

Automation and AI are no longer test projects in grocery—they have become central to how retailers run their businesses. What began as pilot programs—robots scanning shelves or smart carts tracking purchases—has matured into scaled deployments that enhance both efficiency and the customer experience. Retailers now see these technologies not as experimental tools, but as business imperatives tied to revenue growth, shopper engagement and organizational transformation. But the real challenge is not the technology itself—it’s having the right culture, teamwork across departments and strong support from top leadership.

Brad Bogolea, Co-Founder & CEO, Simbe Robotics, explained that the founding vision of Simbe was “digitizing physical retail,” a goal the company is now executing across more than 10 countries. David McIntosh, Chief Connected Stores Officer, Instacart, echoed this focus, citing the rapid growth of Caper smart carts, now live in over 100 cities with major retailers such as Kroger, Morrisons and Wegmans. Suzy Monford, CEO, Food Sport International, added that the industry has shifted from just having a vision to quickly scaling up, faster and more effectively than ever before.

Bogolea noted that retailers using Simbe’s Tally robots saw a 60% reduction in out-of-stocks and nearly flawless pricing accuracy. He also pointed out how the intelligence gathered supports store associates and pickers. McIntosh described the shopper-facing side, highlighting that customers enjoy the interactive capabilities of Caper carts: location-based deals, omnichannel gamification and synced shopping lists. Both speakers emphasized that these technologies are not just efficiency plays—they improve the customer journey while unlocking revenue and loyalty gains.

Bogolea contrasted US and European adoption trends, noting that while the US leads in intelligent shelf investments, Europe is ahead in areas like self-checkout, scan-and-pay and workforce tech. He said that 40% of Simbe’s new customers now come from Europe, where board-level engagement with AI and automation is especially strong. McIntosh stressed that scaling requires demonstrating clear value levers: proving sales lift from Caper cart rollouts, monetizing retail media through on-cart screens, increasing loyalty sign-ups, enabling omnichannel acquisition and reducing theft.

The path from pilot projects to scaled adoption depends heavily on organizational culture. Bogolea stated that “at the end of the day it comes down to change management and cultural shifts,” requiring clear communication, redefined processes and a new operating model. Simbe has even built strategy and realization teams to guide retailers through these transitions. McIntosh noted that alignment across digital, operational and retail media stakeholders is critical, with Chief Digital Officers playing a central role in uniting efforts.

Scaling Online Grocery Profitably

Scaling online grocery today is not just about reaching more customers—it is about building a model that balances profitability, customer experience and long-term growth. Sustainable growth comes from disciplined investment, flexible fulfillment strategies and integrating AI across every stage of the digital journey. Speakers noted that online grocery is not a “big bang” transformation, but a step-by-step process built on testing, learning and cultural readiness.

Lauren Steinberg, EVP & Chief Digital Officer, Loblaw, explained that scaling grocery means far more than just adding capacity. It requires moving beyond early adopters, expanding into cost-sensitive formats like discount banners and maintaining flexibility across fulfillment models. Loblaw has experimented with multiple fulfillment types—pickup, delivery, hybrid services and automated micro-fulfillment centers. This approach enables Loblaw to adapt to consumer preferences without being locked into a single, expensive model.

A major theme from Steinberg was the danger of making large, capital-heavy bets too early. She illustrated how Loblaw’s first click-and-collect location cost $1 million, but through iteration and cost discipline, subsequent rollouts cost just $50,000 each. By the time Loblaw reached 30–40 stores, the model was both scalable and cost-effective. She described this philosophy as “step, step, step and then run,” stressing that scaling grocery is a long game that rewards incremental improvements and patience.

AI is now seen as indispensable to scaling online grocery. Steinberg revealed that 46% of Loblaw’s online “add-to-carts” come from search, yet the company experiences 300 million failed searches per year—representing more than $100 million in lost potential sales. To address this, Loblaw uses AI in search, personalization and data analysis. The company also uses large language models to create “merchandising agents” that improve recommendations. These changes already boosted basket size by $3 and lowered bounce rates by 16%—significant metrics in grocery, where margins are thin. Steinberg also pointed to the rise of “answer engines” and social commerce, emphasizing that retailers must ensure products are discoverable not only within their own platforms but also in emerging digital ecosystems.

For Justin Weinstein, EVP, Chief Strategy & Marketing Officer, Giant Eagle, scaling online grocery cannot be separated from the fundamentals of grocery value. He explained that three pillars are essential: everyday low prices and personalized deals, high quality service both online and in stores and investing in infrastructure that supports consistency across channels. Giant Eagle has already introduced personalized monthly offers, digital bundles and an AI-powered recipe tool that helps customers plan meals with items they already have at home. For Weinstein, these tools are not just digital features—they are part of making shopping easier and more valuable for customers.

Lauren Steinberg, EVP & Chief Digital Officer, Loblaw
Source: Groceryshop

2. The Next Frontier for Retail Media (and New Revenue Streams)

Retailers Becoming Technology Providers

Retailers are no longer just consumers of technology but are transforming into providers of it. After years of testing, refining and scaling solutions within their own operations, many grocers now see an opportunity to package and commercialize their capabilities for others. The shift is not just about building extra revenue streams; it reflects a deeper truth that grocery-specific solutions often cannot be met by generic tech vendors. By moving into B2B technology services, retailers are leveraging their credibility, lived operational experience and trust with peers. Yet, success in this space requires more than having proven technology—it depends on culture, end-to-end support and the ability to act more like a startup than a legacy retailer.

Oliver Vogt, CEO, Transcend, Tesco, explained how Tesco created the spin-off to commercialize its automation and fulfillment technologies, which were initially stress-tested during the Covid years. Rather than keeping these solutions in-house, Tesco recognized its broader market potential and launched Transcend with the ambition to “solve difficult problems” for the industry. Unlike traditional tech vendors, Transcend positions itself as “from grocers, for grocers,” leveraging lived retail challenges as proof of credibility.

A key part of Transcend’s model is offering full end-to-end support, not just selling hardware or software. Vogt emphasized that success often comes from the “whole journey”—helping retailers from early strategy through to execution. For example, when installing micro-fulfillment centers inside stores, Transcend does not just deliver technology; it spends significant time working alongside the grocer to ensure the solution functions in a live retail environment. He noted that being present “at 4am in the middle of nowhere” to fix issues and support store teams builds trust and drives stronger long-term relationships.

A major focus of Vogt’s remarks was culture. To succeed as a B2B provider, Transcend needed to move beyond the slower, corporate culture of a 100-year-old retailer. The team was deliberately “ring-fenced” and based in Poland, which gave it a startup-like speed and a commercial mindset. Equally important was selecting leaders and staff with first-hand operational scars—people with “as many bruises as possible.” This, Vogt argued, ensures the team understands the real-world challenges retailers face and can communicate with credibility to peers.

Vogt admitted that the selling process in B2B retail tech is long, requiring patience and persistence. Many retailers, disappointed by generic tech suppliers in the past, are cautious and want to see proven results before committing. This makes credibility and patience central to winning business. For grocers considering launching their own B2B ventures, Vogt’s advice was to focus on building solutions that can live outside of the founding retailer’s ecosystem, ensuring they are truly transferable. The ultimate goal, he emphasized, is to provide grocery-specific tools that can scale across the industry, rather than one-off fixes.

Look out for the Coresight Research Playbook on tapping opportunities in retail-as-a-service, retail media and data monetization, coming soon.

Loyalty, Gamification and Monetization

Loyalty today goes far beyond points and discounts. When combined with gamification and retail media, it becomes a strong driver of customer traffic, shopping frequency and monetization. Retailers are discovering that shoppers respond best to programs that combine transactional rewards with emotional engagement, resulting in a “triple win”: enjoyable experiences for customers, increased visits for retailers and added value for suppliers. By extending loyalty platforms beyond their own networks and turning them into commercial B2B offerings, retailers are also carving out new revenue streams. Meanwhile, independents are proving that scale in retail media does not just belong to the biggest players—local loyalty, digital engagement and smart in-house technology can generate significant value as well.

Anders Mittag, Chief Commercial Officer, Lobyco, Coop Denmark, explained how Coop transformed its digital loyalty program from an internal initiative into a platform now operating in 12 markets worldwide. The program combines transaction-based rewards with emotional experiences to keep shoppers engaged. Mittag pointed to a 20% increase in shopping frequency driven by gamified elements—an uplift that translates directly into extra trips and larger baskets. He described gamification as essential to standing out in a crowded marketplace, drawing inspiration from global loyalty programs like McDonald’s that blend rewards with entertainment.

Mittag noted that Lobyco’s loyalty platform became so successful that other retailers began requesting access. To meet this demand, Coop built the system as a SaaS-style solution, allowing non-competing retailers to license it. Mittag explained that the cooperative model also made it possible to share costs across a network, creating efficiency for smaller players. But turning an internal department into a commercial business required a cultural shift: Lobyco had to recruit commercial talent, build a go-to-market team and operate with the speed and focus of a technology company rather than an internal IT group.

Michael La Kier, VP, Brand Development, IGA USA, showed how independents can harness loyalty and retail media despite their fragmented networks. Representing 7,500 U.S. stores, IGA built its own retail media network eight years ago, tapping into a $250 billion shopper base that accounts for nearly one-third of US grocery spending. La Kier emphasized that independents’ strength lies in local connection and shopper loyalty, with 70% of consumers saying they prefer to shop local. This loyalty translates into powerful retail media opportunities when aggregated at scale.

Anders Mittag, Chief Commercial Officer, Lobyco, Coop Denmark
Source: Groceryshop

3. Building Unified and Future-Ready Organizations

Breaking Down Silos with a Unified Demand Vision

For large CPG companies, the challenge today is not whether to invest in digital—it is how to unify digital and physical strategies so they operate as one. Neil Reynolds, Global Chief Customer & Digital Commerce Officer, Mars Snacking, explained that the future belongs to organizations that operate with “one demand vision”—where every shopper touchpoint is aligned, KPIs are shared and teams across sales, marketing and commerce work as one. Achieving this vision requires dismantling silos, retraining associates and rethinking agency partnerships. The shift is as much about culture and people as it is about technology.

One of Mars’ biggest levers for change is education. Reynolds detailed how the company is using GenAI-powered personalized learning to upskill 65,000 associates worldwide. The training begins with “Digital Commerce 101,” providing every associate with a baseline understanding of digital commerce. It then provides targeted programs for core functions—such as sales, marketing and finance—through retail media masterclasses and digital shelf training. Finally, advanced tracks help specialists to further develop their expertise. This structured approach ensures that everyone, from executives to frontline staff, speaks the same language and can work toward shared goals.

Reynolds emphasized that digital transformation requires “bilingual” leaders who can translate between traditional CPG operations and new digital-first approaches. Leaders need humility, curiosity, and the ability to blend external digital experience with internal institutional knowledge. At Mars, some of the strongest advocates for change have been those who bring in fresh, external perspectives but can adapt them to the company’s existing culture. This bridging capability, Reynolds noted, is essential to overcoming resistance and aligning teams around a single vision.

Reynolds cited examples like Skittles on TikTok Shop, where digital engagement was directly tied to fulfillment and in-store execution. These activations showed how impulse-driven categories, such as snacking, can thrive when physical availability is combined with digital discoverability. To strengthen this connected commerce approach, Mars restructured its agency relationships, consolidating its ecosystem under Publicis. Reynolds explained that the decision was based on finding a partner that could address the widest set of pain points—from media to influencer marketing to commerce execution—allowing Mars to move faster and more cohesively.

Creating Seamless Omnichannel Experiences

Today’s shoppers expect grocery and retail experiences that are intuitive, fast and consistent—whether they shop in-store, online, or through mobile apps. Creating “seamless” experiences is less about flashy technology and more about aligning the organization around the customer, listening closely to feedback and staying agile.

Rina Hurst, VP, Digital Merchandising, Sam’s Club, described how the retailer has built a reputation for agility and member focus. Digital and physical integration starts with the clubs themselves, which service more than half of Sam’s online volume. Investments in technology such as Scan & Go, now used by 40% of members, and automated exit arches, which reduce checkout times by 23%, directly enhance the member experience. Hurst described Sam’s Club as operating with a “maverick culture,” willing to test, adapt and launch quickly. She pointed to the rotisserie chicken as an example: after seeing its demand for delivery, Sam’s made the service available in just 20 days. Similar fast pivots have been made with pizza, pharmacy and jewelry—turning data insights into operational changes almost overnight.

Michael Reda, VP, Omni-Channel Marketing & Insights, The Marzetti Company, highlighted the perspective of a mid-sized food manufacturer. Unlike retailers, Marzetti does not operate direct-to-consumer channels, so its role is to curate experiences across all the touchpoints where its products appear—whether through retailer promotions, e-commerce listings, or in-store merchandising. Reda emphasized that omnichannel requires integrated promotional activity and breaking down traditional silos, even within manufacturing organizations. For Marzetti, success comes from carefully curating digital promotions, ensuring consistency across platforms and using metrics that extend beyond ROAS to capture the entire shopper journey.

Looking ahead, Hurst and Reda pointed to personalization as the biggest opportunity. At Sam’s Club, the combination of 100% customer visibility (even for cash transactions) and Scan & Go usage provides rich data that can be turned into personalized offers and shopping experiences. For manufacturers like Marzetti, personalization means better matching of digital promotions and content to consumer needs across retailer platforms. Retail media networks, first-party data and new forms of digital targeting are all enabling this shift.

Left to right: Michael Reda, VP, Omni-Channel Marketing & Insights, The Marzetti Company; Rina Hurst, VP, Digital Merchandising, Sam’s Club; and Jason Goldberg, Chief Commerce Strategy Officer, Publicis Groupe
Source: Groceryshop

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Reasons to Read

In September 2025, announced store openings by Ollie’s Bargain Outlet and Alimentation Couche-Tard added more than three million square feet of total opened retail space, Coresight Research calculates.

Dive into US retailers’ latest store closure and opening announcements, as well as the square-footage impacts of these developments, with our monthly US Store Tracker Extra series. In this report, we offer insights into announced developments as of September 24, 2025.

Data in this report are:

Year-to-date (YTD) US store closures and openings estimates for 2025 and 2024, by retailer—total number of store closures/openings and their square-footage impact
US announced store closures and openings: week-by-week data for 2025 versus the comparable period in 2024
US retail bankruptcies, 2025 vs. 2024

Companies mentioned in this report include: Alimentation Couche-Tard, American Eagle Outfitters, Bath & Body Works, Best Buy Co, Burlington Stores, Casey’s, Dick’s Sporting Goods, Dollar General, Gap Inc, Giant Eagle, Ollie’s Bargain, Signet Jewelers Limited, Ulta Beauty, Urban Outfitters, Vera Bradley, Walmart and Wawa.

Other relevant research:

More research reports on physical retail
View our full collection of store tracker reports, covering the UK, the US and Canada.
The Coresight Research US and UK Store Tracker Databank is the definitive resource for information on store openings and closures by sector in the US and UK retail industries.
The Retail Bankruptcies Databank details bankruptcies of US and UK retail companies, restaurants and gyms since March 2020.

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This document was generated for

Reasons to Read

Discover how US consumers sentiment is shifting due to new tariffs and a weakening economic outlook.

Read this report to discover answers to these and other questions:

How is consumer economic sentiment shifting across income groups, and what does this mean for near-term spending?
What are the latest shopping behaviors in apparel, and how dominant are Amazon, Walmart and NIKE?
Which retailers are winning share in the apparel space—and how are shopper preferences evolving?
What categories and brands are resonating most with apparel shoppers?
Where are US consumers shopping for food and nonfood items and how is channel preference shifting?

Data in this research report include: Consumer sentiment by income and time; apparel shopping penetration and category purchasing rates; and retailer and category-level shopping data.

Companies mentioned in this report include: Adidas, Albertsons Company, Amazon, Aritzia, Birkenstock, Columbia Sportswear, Costco, Dick’s Sporting Goods, Dollar Tree, eBay, Family Dollar, Five Below, Finish Line, HOKA, JD Sports, Kohl’s, Kroger, Lululemon, Macy’s, Marshalls, New Balance, Nike, Nordstrom, Primark, Ralph Lauren, Sam’s Cub, Shein, Skechers, Target, Temu, The TJX Companies, T.J. Maxx, Vans, Walmart and Zappos.

Other relevant research:

US Consumer and Retail Outlook—Holiday 2025 and Beyond: Premium Subscriber Call, September 2025
Coresight Research US Consumer Survey Databank provides additional insight into US consumer behaviors from our weekly surveys.

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Reasons to Read

Unlock how AI, health shifts and retail media are reshaping the future of grocery.

Read this report to discover answers to these and other questions:

How is AI moving from an operational tool to a growth engine across the grocery value chain?
What are GLP-1 drugs and how are they driving new shopper behaviors and product strategies?
How are retailers like Lidl US and Sprouts Farmers Market redefining efficiency and differentiation?
What strategies are retailers using to blend physical stores and digital media into full-funnel retail media ecosystems?
How are brands like Coca-Cola, Bayer and Ferrero integrating retail media into long-term marketing and sales strategies?

Companies mentioned in this report include: Ahold Delhaize, Algolia, Bayer, Coca-Cola, Danone, Diageo, Ferrero, Infor, Kroger, Lidl US, Mars, Sprouts Farmers Market, Walgreens and Zip.

Access all of our coverage of Groceryshop 2025.
Visit the Coresight Research Food, Grocery and CPG Retail Hub to explore sector data, reports and company profiles.

Executive Summary

In this report, we present key insights from the second day of Groceryshop 2025, which mainly covered the themes of Efficient and AI-Powered Grocery Operations; Understanding, Captivating and Retaining Shoppers; and The Next Frontier for Retail Media (and New Revenue Streams).

Coresight Research Analysis

In the “Shark Reef” Startup Pitch competition, the Judges’ Choice winner was MUSE, while the Audience Choice award went to Scrollmark.

1. Efficient and AI-Powered Grocery Operations

AI as the Next Growth Lever for Grocery: AI is becoming the foundation of grocery retail rather than just an add-on. Speakers explained that AI must be built into everything—from shopper engagement and store operations to supply chains and pricing. Examples included smarter search tools, recipe planners, personalized recommendations and real-time inventory updates. Experts warned that grocers who ignore AI risk falling behind, while those who use it well are building scalable systems. AI is not only cutting costs but also reshaping loyalty, personalization and workforce management, marking a long-term industry shift.

2. Understanding, Captivating and Retaining Shoppers

The GLP-1 Shopper and Health-Driven Retail: Health is now one of the biggest factors influencing grocery shopping, and GLP-1 weight-loss drugs are accelerating this shift. Users of these drugs eat fewer calories but want more nutrients in every bite, creating demand for nutrient-rich, functional products. Brands like Danone are creating fortified foods and using influencers, retail media and education hubs to connect with shoppers.
Lidl US: Efficiency, Private Brands and Supplier Partnerships: Lidl US is focusing on efficiency, private brands and strong supplier relationships. The retailer has cut its product range to simplify shopping and now offers approximately 80% private-label items, while retaining some national brands for comparison. Technology like electronic shelf labels is improving accuracy and saves labor. Lidl also wants to be suppliers’ top choice by offering stable contracts and investing in partnerships.
Sprouts Farmers Market: Health, Discovery and Differentiation: Sprouts is positioning itself as a destination for health enthusiasts and shoppers who enjoy discovery. Its stores are smaller, open and designed for visibility, with fresh produce, organic products and unique finds at the center. With plans to expand from 450 to 1,400 stores and new distribution centers to support growth, Sprouts is scaling while staying true to its health-first identity. Partnerships with delivery platforms and a new loyalty program are helping maintain digital momentum, while fresh produce remains its strongest differentiator.

3. The Next Frontier for Retail Media (and New Revenue Streams)

Retailer Perspectives: Full-Funnel and In-Store Activation: Retailers such as Ahold Delhaize, Kroger and Walgreens shared that while technology is advancing, people and talent remain key to success. Strategies included Walgreens using its loyalty data, Kroger integrating retail media with consumer insights and Ahold Delhaize launching an in-house ad platform called Edge. They also emphasized in-store media as a major opportunity—using native, relevant messaging instead of just digital screens. The consensus: retail media must blend digital and physical experiences, backed by strong data and personalization.
Brands Perspectives: Integrating Retail Media into Marketing and Sales: Brands such as Coca-Cola, Ferrero and Bayer shared how they are rethinking retail media as part of their broader marketing and sales strategies. They stressed the need to move beyond short-term campaigns and use retail media for long-term brand building, supported by consistent measurement and collaboration with retailers. AI, first-party data and social commerce were identified as major disruptors.

Introduction

The sessions at Groceryshop 2025 are categorized into four major themes, which we presented in our guide to the event:

Efficient and AI-Powered Grocery Operations
Understanding, Captivating and Retaining Shoppers
The Next Frontier for Retail Media (and New Revenue Streams)
Building Unified and Future-Ready Organizations

Groceryshop 2025 Day Two: Coresight Research Insights

“Shark Reef” Startup Pitch Competition

The “Shark Reef” Startup Pitch competition saw 12 early-stage retail-technology innovators compete to win the Judges’ Choice and Audience Choice awards. Deborah Weinswig, CEO and Founder of Coresight Research, emceed the pitch competition and served as lead judge.

The “Shark Reef” startup pitch competition comprised two rounds:

Round 1: All competitors presented for three minutes on how their innovative technologies are addressing important challenges in retail. The judges and audience then rated each presentation, and the six companies that received the highest aggregate ratings progressed to the next round.

Round 2: The finalists each participated in a more in-depth Q&A session with the judging panel. The judges and audience re-rated the finalists to determine the winners! For more information on the companies, see our Innovator Profiles report.

ReFiBuy outlined the rise of agentic commerce, enabling retailers to manage presence across emerging AI-driven shopping engines.
GrocerAI highlighted the failure of legacy search and introduced natural-language, intent-based grocery search that supports health and wellness use cases.
BetterBasket focused on AI-native pricing and product relationship mapping, helping grocers adapt to private label proliferation, tariffs and margin pressures.
Gain demonstrated AI “employees” for procurement, onboarding and negotiations, suggesting a structural redefinition of workforce models.
Buncha highlighted delivery economics by prioritizing batching, refrigerated vehicles, and W2 drivers over gig models. Their model better supports large basket stock-up trips rather than on-demand fill-ins. The company’s white-label model lets retailers embed Buncha into their own sites, reducing risk by improving route density and unit economics.
Relocalize talked about microfactories to eliminate middle-mile logistics, starting with packaged ice, cutting costs by 30% and emissions by 90%.
Sotira applied AI to the $800 billion surplus inventory challenge, providing automated liquidation and monetization for CPGs and grocers.
MUSE showcased robotics to reduce labor constraints, handling tasks from stocking to theft deterrence and layering monetization opportunities through data.
Kalder proposed a “rewards media network” that extends loyalty monetization beyond anchor retailers.
Chimeable solved the quality-cost-scale tradeoff in UGC campaigns by leveraging AI-assisted creators.
Scrollmark addressed the long-standing attribution gap in organic social, directly linking consumer actions to purchase outcomes
Palate showed how eye-tracking and high-fidelity consumer research can prevent costly product missteps, offering velocity forecasting and actionable pre-launch insights

Of these companies, the expert panel selected MUSE as the Judges’ Choice winner.

The Audience Choice winner was Scrollmark.

Deborah Weinswig, CEO and Founder, Coresight Research
Source: Groceryshop

We present key insights from the sessions of day two of Groceryshop 2025.

1. Efficient and AI-Powered Grocery Operations

AI as the Next Growth Lever for Grocery

AI is moving from being just a helpful tool to becoming the backbone of grocery retail. Across sessions, speakers emphasized that AI cannot sit on the sidelines—it needs to be built into every part of the value chain, from engaging shoppers and running stores to managing supply chains and making groceries more affordable. Grocers that bolt on AI as an afterthought risk falling behind, while those that build scalable systems, keep human oversight and apply AI across both planning and customer experience are creating a new model for growth. Beyond cutting costs or speeding up tasks, AI is transforming how grocers approach loyalty, personalization, product choices and labor—marking a structural shift in the industry.

Michelle Cucchi, Product Marketing Director at Algolia, warned that grocers who fail to adopt AI could face the same fate as A&P, once the largest US grocer, which collapsed after failing to modernize. Cucchi presented examples of AI in action: smarter search tools that lifted conversion rates by more than 50%, dynamic recipe planners that adjust for dietary needs or guest counts, personalized recommendations when items are out of stock, and “inventory that talks back,” providing real-time visibility into stock. She positioned these as table stakes for the “unified grocery experience” demanded by digital-first shoppers, particularly Gen Z, who are 46% more likely to shop online than in-store.

Peter Volynsky, Chief Commercial Officer, US at Zip Co, pointed out that 119 million Americans are financially underserved and 13% face food insecurity, making Buy Now Pay Later (BNPL) an essential financial tool for purchasing groceries. Originally designed for discretionary purchases, BNPL is now being used to split payments on groceries, covering essentials like meat, seafood and eggs. Volynsky shared that 73% of Zip users rely on BNPL to manage their monthly budgets and 64% use it to bridge the gap before payday—particularly gig workers who lack consistent income streams. He added that Zip is growing quickly in the US, having already passed its 100 millionth transaction.

On the supply chain side, Miker Herder, VP, Supply Chain at Infor, pointed out that many grocery warehouse management systems are outdated—built decades ago and patched with numerous customizations. This has created a weak foundation that makes modernization difficult. He explained that grocers need to innovate to stay competitive, but legacy systems slow them down at every step. He added that modernizing is not just about efficiency—it also affects employee retention. While Gen X workers can manage clunky systems, 41% of Gen Z employees will quit if the tech/UI is poor. Herder emphasized that automation, robotics and flexible cloud-based systems are essential to tackle both complex operations and labor shortages.

Michelle Cucchi, Product Marketing Director at Algolia
Source: Groceryshop

2. Understanding, Captivating and Retaining Shoppers

The GLP-1 Shopper and Health-Driven Retail

Health is now one of the biggest factors influencing how people shop for food, and the rise of GLP-1 weight-loss drugs is accelerating this shift. People on these medications eat less overall but want foods with more nutrients in every bite. That means brands and retailers need to rethink assortments, marketing and partnerships to meet the needs of this new health-conscious cohort. The biggest opportunities lie in creating nutrient-rich products, sharing clear and credible health information and acting quickly as new consumer trends emerge through tools such as social listening.

Leigh O’Donnell, Head of Shopper & Category Insights, Kantar, highlighted the rapid growth of the GLP-1 market, a trend that Coresight Research has covered across sectors. In 2023, the global market for GLP-1 drugs was valued by Morgan Stanley at $77 billion over a 10-year trajectory. That market size was updated by Morgan Stanley this year (2025), with projections nearly doubling to $150 billion over a 10-year period. She noted that within the next decade, up to 20% of eligible Americans could be using GLP-1 therapy. Key drivers behind this surge include rising obesity rates, improved drug effectiveness with fewer side effects and advances in formulations that are expected to lower costs over time.

O’Donnell also highlighted behavioral changes among users: 93% of those surveyed reported making healthier choices after starting GLP-1, 43% said they make better overall decisions and 38% indicated they eat or drink less. Additionally, 69% described themselves as actively working to improve their health on a daily basis.

Linda Bethea, CMO, North America, Danone, said this is a fundamental shift, not a short-term trend. GLP-1 users consume about 40% fewer calories, which forces brands to design foods that deliver more nutrients in fewer calories. She described how Danone is leaning on its science-based background to create fortified and functional products. To support this, Danone has launched a GLP-1 Nutrition Hub to educate consumers with credible, science-backed information.

Bethea also highlighted the role of influencers. Doctors and health experts are most effective at the early education stage, while lifestyle influencers connect more effectively later in the journey. She said retail media is a powerful tool for reaching consumers at the point of purchase, and audio channels like podcasts are also proving effective. But education remains the biggest challenge—helping consumers understand their nutritional needs, while also making sure company leaders recognize that GLP-1 is not a passing fad. She added that agility is key, especially in staying ahead of fast-moving health trends like protein, gut health and reduced sugar.

Look out for the Coresight Research Playbook on how retailers and brands should adapt to GLP-1 adoption, coming soon.

Linda Bethea, CMO, North America, Danone (Left); and Erin Cabrey, Senior Reporter, Morning Brew (Interviewer)
Source: Groceryshop

Lidl US: Efficiency, Private Brands and Supplier Partnerships

Lidl US is doubling down on its reputation as a lean, efficient discounter. Its strategy is built around offering fewer products, focusing heavily on private brands and using technology like electronic shelf labels to save labor and cut costs. At the same time, Lidl wants to be a preferred partner for suppliers, building strong relationships through long-term contracts.

Joel Rampoldt, CEO, Lidl US, said his priorities are talent, commercial excellence, operational excellence and financial transformation. On products, Lidl reduced its range from 4,500 SKUs to 3,250, using a “category management” approach to eliminate duplicates. Private brands now make up about 80% of the range, but Rampoldt said national brands are still important, especially to highlight the price difference against Lidl’s own products.

He also explained Lidl’s approach to suppliers. The company aims to be “every supplier’s first choice,” offering predictable, long-term contracts and investment to help partners grow. About 85% of Lidl US products are sourced domestically, and Lidl has been running supplier roadshows to explain its model. Globally, Lidl operates with the philosophy “as global as possible, as local as necessary,” which strikes a balance between scale and local sourcing.

Rampoldt highlighted technology as a key driver of operational efficiency. The adoption of electronic shelf labels not only saves store teams time each week but also ensures accurate pricing. Looking forward, Lidl plans to introduce advanced self-checkout hardware and software from Europe to the US market. Rampoldt noted that Lidl continuously seeks to streamline processes and “take steps out,” aiming to make operations faster, leaner and more efficient.

Sprouts Farmers Market: Health, Discovery and Differentiation

Sprouts is carving out a very different path from discounters, with a focus on health enthusiasts, experiential shopping and discovery. Rather than being a shopper’s main grocery store, Sprouts wants to be a complementary destination—known for fresh produce, organic products and unique finds. Store design, product sourcing and marketing all reinforce this positioning.

Jack Sinclair, CEO, Sprouts Farmers Market, described how Sprouts’ smaller-format stores are built for openness and visibility. With low shelves and wide sight lines, customers can see across the store easily. Fresh meat is placed at the start, produce in the middle, and bulk sections offer both value and portion control. A central “innovation center” features new products not found in other stores, making shopping feel like a “treasure hunt.” Sprouts also employs a “Chief Foraging Officer” whose role is to scout entrepreneurial brands and bring them to market.

Sinclair described Sprouts’ growth ambitions: the retailer currently has 450 stores in 24 states but sees potential for 1,400 locations nationwide. To support this, Sinclair said new distribution centers are being added so stores are always within 250 miles. Fresh produce accounts for 20% of sales, with organic representing more than half of that mix.

On digital, Sinclair noted that the channel’s share of sales jumped from 2% pre-Covid to 15% post-Covid and has held steady. Partnerships with DoorDash and Uber Eats have enabled Sprouts to extend its reach, and he emphasized that fresh products perform equally well online as they do in-store—a sign of shopper trust. Sprouts is also launching a new loyalty program, with early adoption showing strong sign-ups.

He summed up Sprouts’ strategy in four parts: merchandising, real estate, supply chain and marketing. Fresh produce remains a core differentiator, but competitive pricing is also essential, especially as inflation puts pressure on both consumers and farmers.

Jack Sinclair, CEO, Sprouts Farmers Market (Left); and Chris Walton, Co-CEO, Omni Talk (Interviewer)
Source: Groceryshop

3. The Next Frontier for Retail Media (and New Revenue Streams)

Retail Media’s Next Chapter: Scale, Data and In-Store Activation

Retail media is evolving from rapid growth into a phase of consolidation, differentiation, and sophistication. The sessions made three themes clear: (1) in-store activations will be the next big unlock, bridging digital and physical journeys, (2) first-party data is the true currency of the future, and (3) consistent, credible measurement is the foundation for ROI and advertiser trust.

Michele Roney, EVP, Retailer CX, Mars United Commerce, noted that retail media ad spend continues to grow, but the pace is slowing. Amazon still dominates with 75% of spend, Walmart follows with 8% and the remaining 16% is split across more than 200 networks—creating fragmentation that makes it difficult for advertisers to choose partners. Advertisers are becoming more selective, directing dollars only to networks that can prove scale, quality audiences and measurable ROI.

Roney outlined the “seven must-haves” for retail media success:

Robust data assets with both scale and unique characteristics.
Organizational readiness with proper resourcing.
Comprehensive offerings spanning owned and paid placements.
Activation tools that integrate easily with external platforms.
Strong measurement capabilities to prove business impact.
Internal alignment with achievable KPIs across teams.
Ongoing demand generation to build advertiser awareness.

Retailer Perspectives: Full-Funnel and In-Store Activation

A panel featuring Bobby Watts (SVP AD Retail Media & Digital Merchandising, Ahold Delhaize USA), Christine Foster (SVP, Kroger Precision Marketing) and Abi Subramanian (Group VP, Loyalty, Walgreens Advertising Group & Owned Asset Monetization, Walgreens) brought the retailer’s perspective. All three emphasized that while technology is evolving, people remain central to making retail media effective. Watts said talent is critical to managing platforms and relationships, while Foster agreed that “technology evolves, but it’s the people behind it that make it effective.”

Each retailer highlighted their strategy:

Retail Media Strategies

Walgreens emphasized the strength of its loyalty data and audience reach as a foundation for building brand awareness. By partnering with Circana for independent measurement and aligning with external media service platforms such as Criteo and The Trade Desk, Walgreens aims to resonate more strongly with brand advertisers and “meet them where they are”.
Kroger highlighted the evolution of Kroger Precision Marketing (KPM), which integrates consumer insights, loyalty marketing and retail media into a comprehensive “insights-to-activation” solution. Now in its seventh year, KPM continues to focus on improving how it meets brands where they are.
Ahold Delhaize detailed its structural transformation, merging digital and retail media teams to deliver a true full-funnel and aligned approach. The company announced the launch of Edge, a proprietary in-house ad-serving platform designed to enhance relevance and drive stronger customer engagement.

People vs. Technology

While technology is advancing rapidly, panelists agreed that retail media remains a people-driven business:

Ahold Delhaize stressed that strong talent is critical to manage technology, build relationships and deliver results.
Kroger echoed this sentiment, noting that while technology evolves, “it’s the people behind it that make it most effective.”

Enhancing the Customer Experience

Ensuring value-driven, seamless engagement was a common priority:

Walgreens underscored the importance of personalization at scale, using data from online, browsing and in-store behavior.
Kroger emphasized that sponsored products are “additive, not disruptive,” playing a crucial role in shaping the customer journey.
Ahold Delhaize described lifecycle marketing as the path to achieving true one-to-one personalization, made possible by its robust data and evolving technology.

Unlocking In-Store Media Potential

All panelists recognized in-store media as a largely underutilized frontier in the US, with opportunities to elevate customer experience:

Kroger noted that in-store activations should go beyond screens on walls, instead offering native, relevant messaging that integrates seamlessly into the environment.
Walgreens highlighted its unique store footprint, with 80% of customers residing within a five-mile radius of a store, making in-store activations a powerful “point of influence” opportunity.
Ahold Delhaize described its digital store initiative, which combines analog signage, mobile app integration and in-store media to create a connected ecosystem—bridging the gap between digital and non-digital shoppers.

Brands’ Perspectives: Integrating Retail Media into Marketing and Sales

A second panel brought the brand perspective, featuring Danielle Sporkin (SVP, Media & Marketing Services, Ferrero), Katie Neil (Head of Connected Commerce, The Coca-Cola Company) and Ajay Sharma (VP, eCommerce & OmniChannel, Target & Emerging Platforms, North America, Bayer Consumer Health). The panelists explored how leading consumer brands are redefining retail media within the broader context of marketing and sales. As retail media networks (RMNs) mature, brands are being challenged to think beyond tactical activations and integrate RMNs into full-funnel brand strategies. Key themes included evolving definitions of retail media, the complexity of measurement, the disruptive influence of social commerce, the growing role of AI and first-party data, and the need for internal and external collaboration.

Defining Retail Media: Katie Neil said Coca-Cola views retail media as a tool of influence rather than a siloed channel, with omnichannel integration and first-party data driving brand building. Danielle Sporkin defined it broadly—covering onsite, offsite, in-store and display—emphasizing how it overlaps with ecommerce to blend marketing and sales.
Measurement: Ajay Sharma stressed the need to move beyond campaign-level metrics to an enterprise view tied directly to brand objectives and category growth. Neil noted the lack of consistency across RMNs and described Coca-Cola’s six-to-eight-week measurement framework designed to normalize ROI. Sharma also highlighted the role of data signals in tracking shopper shifts and reallocating investment accordingly.
Disruption from Social Commerce: Neil called social commerce a “massive unlock,” opening audiences beyond the reach of traditional retail media. Sporkin added that retailers are acting like media companies and vice versa, pushing the need for integrated strategies.
AI and Infrastructure: Sporkin stressed that Ferrero is building foundational infrastructure first—consistent taxonomy and centralized data lakes—before layering on AI. She said this is essential for AI to deliver in personalization and discovery.
Consumer Discovery: Sharma noted that shoppers are increasingly using tools like ChatGPT to discover products, which forces brands to think about how to engage new discovery platforms. Sporkin added that retailer partnerships are vital to understanding the future trajectory of discovery.
First-Party Data: Sharma said retailer data is crucial for closing the loop from measurement to conversion. Neil emphasized the upstream opportunity—taking retailer audiences off-platform and applying them in national brand campaigns. Both called for more transparent, self-service access to retailer data.

For brands just starting out, Neil advised setting clear KPIs tied to business outcomes, choosing RMN partners who can deliver on those and embracing experimentation. Sporkin emphasized collaboration, both within companies (across brand, trade, shopper and ecommerce teams) and externally with retailer partners.

Left to right: Danielle Sporkin, SVP, Media & Marketing Services, Ferrero; Katie Neil, Head of Connected Commerce, The Coca-Cola Company; Ajay Sharma, VP, eCommerce & OmniChannel, Target & Emerging Platforms, North America, Bayer Consumer Health; and Molly Hop, EVP & North American Lead of Havas Market, Havas Media Network
Source: Groceryshop

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Reasons to Read

On September 25, 2025, the Coresight Research team presented a comprehensive outlook on consumer and retail prospects for the upcoming holiday season and into 2026. The session explored the key forces shaping demand, from tariffs and macroeconomic factors to evolving consumer sentiment and spending behaviors.

This presentation covered:

Holiday 2025 Demand Drivers–How tariffs, inflation, and broader economic conditions are expected to influence holiday spending.
Consumer Segments Poised for Growth–Which shopper groups are likely to lead purchasing activity, and how retailers can better serve their needs.
Retail Strategy in a Shifting Landscape–What leaders should anticipate around inflation, demand volatility, and consumer confidence.
2026 Outlook–Strategic insights on how holiday performance may set the tone for the year ahead.

Featured speaker from the Coresight Research team:

John Mercer, Head of Global Research

Other relevant research:

Watch the full video available here
All our insights on supply chain and AI in retail
More event coverage from Coresight Research
Visit the Coresight Research Retail Technology Hub to explore reports, data and competitive landscapes on technology.
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Reasons to Read

Uncover how AI, automation and changing consumer values are reshaping the future of grocery retail, with our insights from day one of Groceryshop 2025.

Read this report to discover answers to these and other questions:

How is generative AI transforming product discovery and what must brands do to stay visible in an AI-first search landscape?
What internal changes must companies make to become truly agentic AI-ready?
How are retailers using AI to accelerate product development, personalize marketing and optimize supply chains-and what are the risks?
What fulfillment strategies and technologies are driving faster, cheaper and more flexible grocery delivery models?
How are shoppers redefining value, wellness and affordability-and how should retailers respond to keep their loyalty?

Companies mentioned in this report include: Aldi, Church & Dwight, Diageo, NielsenIQ, Ocado, PepsiCo, Thrive Market, TikTok Shop, Uber, Walmart and Whole Foods Market.

Access all of our coverage of Groceryshop 2025.
Visit the Coresight Research Food, Grocery and CPG Retail Hub to explore sector data, reports and company profiles.

Executive Summary

In this report, we present key insights from the first day of Groceryshop 2025, which mainly covered the themes of Efficient and AI-Powered Grocery Operations and Understanding, Captivating and Retaining Shoppers.

Coresight Research Analysis

Efficient and AI-Powered Grocery Operations

The Rise of GenAI in Search and Discovery: Shoppers are now discovering products directly through AI tools like ChatGPT and Perplexity instead of traditional search engines. To stay visible, brands must ensure their product information is clear, consistent and easy for AI systems to use. Early evidence suggests that AI-driven traffic converts at much higher rates than traditional search, so preparing content for AI is now as important as search engine optimization once was.
Building for Agentic AI and Data Readiness: Agent-based AI can manage tasks like inventory planning or marketing, but it only works with clean, structured data. Many companies still struggle with data silos and poor data quality. Retailers will need new roles (like data librarians), cross-functional governance and cultural change to prepare their organizations for agentic AI.
Rapid AI Applications in Commerce, Supply Chain and Media: Companies are already using AI to speed up product development, personalize offers and streamline supply chains. PepsiCo, for example, uses AI to test packaging virtually, while many retailers experiment with AI-driven personalization in marketing. However, challenges remain, including data quality, hallucinations and privacy risks. Adoption is outpacing regulation, making governance a priority.
Automation and AI Driving Smarter Fulfillment: Shoppers want both speed and choice in delivery. Companies such as Uber and Ocado are using AI and robotics to make fulfillment faster and cheaper, while offering a range of services, from on-demand delivery to scheduled drop-offs. Success depends on being flexible and providing multiple fulfillment options while managing costs with AI-driven forecasting and automation.

Understanding, Captivating and Retaining Shoppers

Cautious Consumers and the Rise of Value-Driven Shopping: Inflation and reduced SNAP (Supplemental Nutrition Assistance Program) benefits are making shoppers more price-conscious. Private label and online deals are gaining share, while social commerce platforms such as TikTok Shop are experiencing rapid growth. Retailers need to adapt quickly with value-focused offers and seamless digital strategies to keep customer loyalty.
Balancing Health, Wellness and Affordability: Consumers want healthier products but at affordable prices. Whole Foods’ approach shows how retailers can maintain high standards while expanding private labels and lowering prices. Health trends now combine nutrition, sustainability and authenticity, with shoppers expecting both wellness and affordability in their baskets.
Democratizing Healthy Food Access: Access to healthy food is still limited for many households. Thrive Market is addressing this by selling organic food cheaper than regular stores through a membership program (like Costco). The company uses AI to personalize product suggestions, accept SNAP online and offer free memberships to families in need, making healthy food more accessible to a wider audience.

Introduction

The sessions at Groceryshop 2025 are categorized into four major themes, which we presented in our guide to the event:

Efficient and AI-Powered Grocery Operations
Understanding, Captivating and Retaining Shoppers
The Next Frontier for Retail Media (and New Revenue Streams)
Building Unified and Future-Ready Organizations

Groceryshop 2025 Day One: Coresight Research Insights

1. Efficient and AI-Powered Grocery Operations

The Rise of GenAI in Search and Discovery

GenAI is fundamentally changing the way products are discovered and purchased. Shoppers are now finding products directly inside AI platforms such as ChatGPT and Perplexity instead of clicking through websites. To win, brands need to make sure AI systems can easily “read” and use their content. This means creating clear, consistent product information across all channels and feeding that directly into AI models.

Elena MacGurn, SVP, Search, Digitas, described how consumer journeys are no longer linear or confined to specific channels. Instead, AI-powered search engines now evaluate signals across commerce, social, search and more to determine which brands surface in AI-native search platforms such as Perplexity and ChatGPT. Importantly, whether a brand “wins or loses” is increasingly decided before a shopper clicks on a website or visits a store.

MacGurn explained that AI users are highly qualified, with AI-driven website visits converting at a rate 23 times higher than traditional search. This makes AI search one of the most powerful new sources of engagement and conversion for retailers and brands. She emphasized that traditional keyword optimization is no longer sufficient; the future requires creating a consistent, contextual and multi-channel content ecosystem that AI systems can ingest. This includes not only blogs and product detail pages, but also comparison pages, occasion-driven content and direct syndication of product data to large language models (LLMs).

Prasanna Kumar, Global Digital Commerce Experience Director, Diageo, brought these concepts to life by sharing real-world applications. He framed AI as “the new shelf”—the space where consumers now discover and decide on products. To adapt, Diageo is experimenting with how different product descriptions, signals and contextual content affect brand visibility across AI platforms, such as Gemini and ChatGPT. The company is also investing in occasion-led content strategies, where discovery is tied to consumer intent and context (for example, what to drink for certain events or celebrations).

Measurement has also evolved. Diageo now tracks share of shelf within AI answers, referrals from AI platforms to retailers, and incremental conversions from AI-driven traffic. With AI already accounting for a significant portion of traffic—MacGurn cited that 20% of Walmart’s referrals now come from AI platforms—these new metrics are critical for understanding performance. Kumar further highlighted the need for strong cross-team collaboration across media, retail media and digital commerce teams, using shared scorecards and syndication strategies to align signals across all touchpoints.

Looking forward, both speakers stressed that future-proofing requires brands to think like AI engines themselves. Feeding LLMs with structured product content and credible, authentic voices will be essential to establishing a brand presence in an AI-driven discovery landscape.

Elena MacGurn, SVP, Search, Digitas (Left); and Prasanna Kumar, Global Digital Commerce Experience Director, Diageo (Right)
Source: Groceryshop

Building for Agentic AI and Data Readiness

The transition to agentic AI will only succeed if enterprises solve their foundational data challenges. Retailers must shift from siloed systems to real-time, structured and trusted data pipelines that AI agents can act on. This transformation is as much a cultural change as a technical one—requiring new roles, new processes and greater cross-team collaboration to ensure data can be consistently trusted and scaled across the enterprise.

Jason Cottrell, CEO & Founder, Orium, explained that AI agents should be thought of not as “lone geniuses” but as teams of employees—each one able to run different business functions such as inventory planning, marketing execution or replenishment. For example, an inventory agent might pull in warehouse data, apply replenishment rules and even factor in weather forecasts before making supply decisions. Cottrell shared an “agent framework” made up of several elements: a core agent engine (the “brains” of the system), memory and context (customer and supply chain data), decision logic (rules and reasoning), operational oversight (supervision and feedback loops), guardrails (for safety and trust) and application programming interface (API) integration with workflows like order management systems (OMS) and enterprise resource planning (ERP) systems.

He suggested that if a task is repeated three times, it should be automated. He stressed companies need to start capturing their own decision-making processes in structured ways (for example, transcripts, decision logs), so agents can learn from them just as employees do.

Brian Bell, VP, Strategy & Planning, Church & Dwight, added that poor data quality is the single biggest risk for AI adoption. He cited research showing that as many as 95% of AI projects underperform because enterprises lack clean, trusted and usable data. Bell warned that companies risk what he called “work slop”—a hidden productivity drain caused by employees constantly cleaning up unstructured data before AI systems can use it. To address this, he proposed creating new roles such as data librarians—people dedicated to curating and maintaining enterprise data so agents can access it reliably.

Bell also noted that many enterprises are still unsure who should “own” agentic AI. Polling during the session revealed that 42% of attendees believe it should be managed by a new cross-functional AI team, ideally reporting into the CIO, CTO or CEO. He cautioned against “AI sprawl,” where experiments proliferate without governance, leading to wasted effort and inconsistent results.

Both speakers agreed that readiness for agentic AI requires more than technology investment. Companies need to build new architectures as a foundation, restructure data and context so agents can use it, shift staff mindsets from fear to excitement and deliberately redesign processes rather than letting them evolve by accident.

Jason Cottrell, CEO & Founder, Orium
Source: Groceryshop

Rapid AI Applications in Commerce, Supply Chain and Media

AI is already helping companies develop products faster, shorten supply chains and personalize marketing. Yet alongside these opportunities are risks—hallucinations, governance gaps and data quality issues.

Marisa Perez, SVP, Digital Commerce, PepsiCo, described how AI is being applied to product development. By simulating consumer insights, testing packaging variations in virtual environments and running faster iterations, PepsiCo has been able to accelerate development timelines significantly. Perez emphasized that this process not only drives efficiency but also makes innovation “more fun,” encouraging teams to embrace rapid experimentation, fast failures and quick pivots. She also pointed to personalization as a major growth area, sharing how Gatorade is experimenting with AI-driven, custom-designed bottles—an example of how shoppers’ desire for unique, personalized products is shaping marketing and product strategy.

Manuel Queiroz, Partner, Bright Pixel Capital, discussed how AI is making supply chains and procurement more efficient. He explained that AI is helping companies cut time-to-market by as much as 50% by using synthetic data to simulate customer feedback and by integrating platforms across sourcing, spend optimization and demand sensing. Queiroz also touched on procurement automation, noting that large organizations with long tails of suppliers are beginning to test agent-based negotiation systems. While humans will remain in the loop for sensitive supplier relationships, AI is already handling much of the “heavy lifting” in these processes.

Lauren Sanvidge, Executive Director, Head of Commerce, PHD Media, described how AI is changing personalization in media. Gen Z and millennials are treating GenAI as a conversational partner—using polite, human-like language (“please” and “thank you”) and expecting personalized responses. Sanvidge noted this behavior is driving a massive opportunity for AI-driven personalization in retail media, where brands can tailor content, offers and creative to individual consumers in real time. However, she cautioned that hallucinations remain a serious issue, especially when applying AI to deep datasets. Her team has tested bespoke LLMs and dummy data, but hallucinations persist, underscoring the need for stricter governance and oversight.

The panel also raised challenges around data quality. Perez said teams spend huge amounts of time cleaning data because bad inputs lead to bad results. Sanvidge also raised concerns about data privacy, noting that many brands are starting to build their own private AI systems to reduce risk. Still, the pace of adoption is moving faster than the creation of clear rules or safeguards.

The speakers concluded with a provocative thought: as AI agents proliferate across retail, we are moving toward a world where brands may increasingly create content for machines rather than humans—optimizing how their products show up in AI-powered search and recommendation systems. This future, while exciting, makes the need for clean data, brand safety standards and governance more urgent than ever.

Marisa Perez, SVP, Digital Commerce, PepsiCo
Source: Groceryshop

Automation and AI Driving Smarter Fulfillment

The future of fulfillment is about flexibility—balancing immediacy, cost efficiency and consumer expectations. Shoppers want both speed and choice, which means no single model will win. Companies are turning to AI and robotics to lower costs, predict demand and personalize the experience. The winners will be those who can offer many options—on-demand delivery, scheduled delivery, store pickup and automated fulfillment.

Susan Anderson, Global Head of Delivery, Uber, explained how Uber is expanding beyond restaurants into grocery and general retail. In just the last year, Uber added over 1,000 retailers worldwide and now powers 50,000 storefronts in the US, with Aldi as the newest partner. Unlike delivery-only competitors, Uber’s advantage lies in its ability to combine both rides and deliveries. For example, Walmart customers use Uber not just for last-mile delivery but also for rides to the stores.

Anderson also explained how Uber is using AI to make shopping more personal. Features like “freshness guarantees” ensure quality in grocery orders, while personalized carousels help shoppers discover relevant items for holidays, events and last-minute gifting. Valentine’s Day, for instance, was Uber Eats’ biggest day ever, with 150,000 flower deliveries—most after 11 p.m.—underscoring how AI-driven merchandising can anticipate and serve urgent, time-sensitive needs. Uber is also testing deeper personalization based on customer history, time of day and occasion (for example, “back-to-school” or “weeknight dinners”). Anderson framed Uber as a “super-app in the making,” where ride-hailing, grocery, gifting and retail all connect in one ecosystem.

Tim Steiner, CEO of Ocado, explained how automation is helping grocers make online shopping profitable. Large automated warehouses are still the cheapest way to handle scheduled deliveries, but they are expensive if not fully used. Ocado has developed smaller automated centers that can break even at much lower sales volumes. Advances in robotics, such as picker robots that can operate alongside box-moving robots, are enabling more efficient micro-fulfillment and reducing space requirements.

Steiner pointed out that shoppers’ needs vary by country. In the UK, 95% of online grocery orders are delivered to the home, while in France, 90% are pickup. Customers do not want slower service, but they do not always need instant delivery either—sometimes they prefer lower prices or bigger baskets. That means retailers must offer a mix of fast same-day services and cheaper scheduled deliveries. Ocado’s technology supports all these models, from picking in-store to dark stores to fully automated warehouses.

AI plays a big role in Ocado’s operations. It helps forecast demand, schedule workers, optimize delivery windows and manage costs. With labor and delivery costs rising, Steiner noted automation and AI will be essential to meeting consumer expectations while keeping costs down.

Susan Anderson, Global Head of Delivery, Uber (Left); and Jordan Berke, CEO & Founder, TOMORROW (Interviewer)
Source: Groceryshop

2. Understanding, Captivating and Retaining Shoppers

Cautious Consumers and the Rise of Value-Driven Shopping

Shoppers are more cautious and price-conscious than ever. Inflation, higher living costs and regulatory changes are forcing consumers to rethink how and where they shop. Many are trading down to private labels, seeking more deals and moving their spending online or into social commerce channels. Retailers that can respond quickly with the right value propositions—through pricing, promotions and private brands—will be best placed to capture loyalty in this environment.

Jennie Bell, Managing Director, Snacks & Beverages, NielsenIQ, presented research showing just how much consumer behavior has shifted. Since 2021, grocery prices have increased by 28.5%, and nearly three-quarters of shoppers (73%) say they feel the impact of these rising costs. As a result, 50% of shoppers are seeking deals more often, with coupon use rising and trade-down behavior accelerating.

Private label products are becoming a clear winner in this shift. Bell explained that private label share, with growth rates (5.1%) more than double those of national brands (2.3%). Retailers are no longer just positioning private labels as budget options—they are expanding into premium ranges and creating strong brand portfolios to cover both value and quality segments. This allows retailers to capture both ends of the cautious consumer spectrum: those who want low prices and those who want affordable premium alternatives.

At the same time, shopping habits are shifting across channels. Online sales are up 15% year-over-year, with 1.2 billion units—worth $4.7 billion—moving away from brick-and-mortar stores into digital channels. This trend is especially strong in categories such as general merchandise, baby and health and beauty, which are seeing double-digit online growth. Social commerce has emerged as a powerful force in this transition. TikTok Shop, for example, generated nearly $6 billion in sales, with categories like snacks, beverages and health products up 100% year over year and each category averaging $50 million–$100 million in sales. Bell summed up that “digital is at the heart of every consumer decision,” underscoring the need for retailers and brands to adapt to a consumer base that is more price-sensitive, convenience-driven and digitally engaged than ever.

Regulatory shifts, particularly around SNAP (Supplemental Nutrition Assistance Program), are also driving major behavioral changes. SNAP households, which make up a large segment of US grocery shoppers, are responding to reduced benefits in two ways: by reducing consumption (31% say they will buy less food, 26% say they will skip meals, 27% plan to cut non-essentials) and by changing habits (28% will shop at lower-cost retailers, 26% will buy more private labels and 26% will use coupons more often). Planned reductions in SNAP funding over the next decade are expected to further accelerate these shifts.

Bell concluded with the following key takeaways:

1. Consumer Behavior is Shifting Rapidly

Shoppers are cautious, value-driven and adapting their buying habits due to economic pressures and regulatory changes.
Retailers and manufacturers must respond quickly to remain relevant.

2. Omnichannel Strategies Are Essential for Growth

E-commerce and digital channels are taking share from brick-and-mortar.
Retail winners will be those who connect channels seamlessly and meet consumers wherever they shop.

3. Anticipate Emerging Trends Before They Disrupt

Growth depends on spotting and acting early on shifts like health & wellness, private labels and digital commerce.
Early movers will capture growth and avoid being left behind as the market evolves.

Jennie Bell, Managing Director, Snacks & Beverages, NielsenIQ
Source: Groceryshop

Balancing Health, Wellness and Affordability

Shoppers today want the best of both worlds—healthier products and affordable prices. Retailers are under pressure to deliver high wellness standards without compromising value. Whole Foods has adapted by holding firm on quality while expanding private labels, cutting prices and broadening promotions to appeal to a more cost-conscious shopper base.

Sonya Gafsi Oblisk, Chief Merchandising & Marketing Officer, Whole Foods, described how wellness has taken on new meaning. For many customers, it’s no longer just about avoiding unhealthy ingredients—it’s also about actively seeking out functional benefits. She broke this into two dynamics: the absence of negatives (removing additives, red dyes and other artificial ingredients) and the presence of positives (nutrient-dense foods, functional grains and protein-rich products). Whole Foods has banned more than 500 ingredients across its stores, and these standards are continuously reviewed in what Oblisk called an “always-on process.” She stressed that these strict standards are the “nucleus” and “north star” of the Whole Foods brand.

At the same time, price sensitivity has become one of the most important forces shaping shopper behavior. Oblisk called this “the largest and most impactful trend” the company has faced in recent years. Whole Foods has responded by cutting prices on more than 25% of its products, introducing deeper weekly discounts and lowering prices on over 1,000 private label SKUs. Its 365 brand, positioned as high-quality but affordable, has grown more than 50% in the past five years. Oblisk said the brand is central to making Whole Foods competitive with conventional grocers, while still staying true to its health and quality positioning.

Looking ahead, Oblisk pointed to several trends she expects to shape grocery: functional grains (like buckwheat and chickpeas) that combine nutrition with sustainability, artisanal and heritage products that bring authenticity and international culinary influences that add excitement. These, she noted, are part of the next wave of wellness and culinary inspiration that shoppers will expect retailers to provide—alongside competitive prices.

Democratizing Healthy Food Access

Access to healthy food remains uneven across the US, with affordability, geography and misinformation creating barriers for many households. Thrive Market is positioning itself as a mission-driven retailer that lowers these barriers by offering affordable natural and organic products, providing trusted guidance in a confusing food landscape and expanding access for low-income families.

Nick Green, CEO & Co-Founder, Thrive Market, explained that the company was founded in 2014 with a mission to make healthy eating both affordable and accessible. The idea came from recognizing that most Americans either lived too far from health-focused grocery stores or could not afford premium natural products. Today, Thrive operates on a membership model, similar to Costco, which allows it to price organic and natural products below the cost of many conventional equivalents. More than 20% of its sales come from private label, a key lever in keeping prices low while also driving brand loyalty.

Green emphasized that consumer interest in health is not a fad. Over the past decade, even through economic ups and downs, the desire to eat healthier has grown into what he called a “megatrend.” Thrive’s customers span geographies and demographics—half are based in the Midwest and Southeast, showing that healthy eating is no longer limited to coastal or urban markets.

AI plays a growing role in Thrive’s customer experience. The company uses it to personalize shopping journeys—filtering assortments based on dietary preferences, predicting replenishment needs and even suggesting products members might not have considered but are likely to want. Quizzes (for example, asking whether a member is gluten-free) combined with shopping data are used to build a 360-degree view of each customer, turning food shopping into a personalized lifestyle service rather than just replenishment.

Thrive is also tackling the issue of misinformation. Green pointed out that ultra-processed foods often make misleading health claims, and that consumers are overwhelmed by conflicting information online. Thrive positions itself as a trusted curator—using its data and standards to filter out products that do not meet its health criteria, and surfacing only those that align with its mission.

The company has been expanding access of healthy products for low-income households. After nearly a decade of lobbying the USDA, Thrive became one of the first retailers allowed to accept SNAP benefits online. This was a major breakthrough, as SNAP households comprise millions of US consumers but previously had limited options to buy healthy products online. Thrive also gives free memberships to families in need, further lowering the barrier to access.

Green described Thrive as both a retailer and a data company, using its insights not only to serve customers but also to help fast-growth, health-focused brands succeed. By spotting promising smaller brands early and introducing them to its membership base, Thrive helps accelerate the shift toward healthier products in the broader market.

Nick Green, CEO & Co-Founder, Thrive Market (Left); and Sarah Engel, President, January Digital (Interviewer)

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Reasons to Read

As part of our Market Navigator series, Coresight Research explores the US grocery market. Dive in today to understand how tariffs, demographics and digital disruption are reshaping the US grocery market in 2025 and beyond.

Read this report to discover answers to these and other questions:

How will weak demand and a fragile macroeconomic backdrop shape grocery growth in 2025?
Which grocery categories and supply chains are most at risk from tariffs?
Why is food-at-home inflation expected to accelerate in the second half of 2025?
How does the aging demographic profile of supermarket shoppers threaten traditional grocers?
What advantages allow non-traditional players like Walmart, Costco, and Amazon to dominate the US grocery landscape?

Companies mentioned in this report include: Ahold Delhaize, Albertsons, Aldi, Amazon, Costco, Dollar General, Dollar Tree, Grocery Outlet, H-E-B, Kroger, Lidl, Natural Grocers, Publix, Save A Lot, Sprouts Farmers Market and Walmart.

Data in this report include: US grocery retail sales and growth; in-store CPG unit sales trends; grocery channel distribution; online grocery sales and e-commerce penetration; top food and beverage categories in online grocery; consumer grocery spending and inflation impacts; agricultural import values and sources; demographic shifts in household and shopper composition; food-at-home vs. food-away-from-home spending; retailer revenues, margins, and market share; store counts, gross square footage, sales per store and per square foot; and grocery store traffic patterns.

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Reasons to Read

Welcome to Analyst Corner! Every Sunday, a member of the Coresight Research team discusses upcoming or recent research and their thoughts on interesting topics in their area of expertise.

This week, Sujeet Naik, Analyst, explores grocery retailing in the US, including our growth projections for this year, current market factors and what we expect for the grocery sector moving forward.

Analyst Corner also highlights our key research from the past week and upcoming reports to look out for, so you don’t miss out.

Other relevant research:

US Grocery Retailing—Market Forecast and Competitive Landscape: Nontraditional Grocers To Gain Share Amid Weak Volume Demand and Tariff Pressures publishes on Monday, September 29.
Read previous Analyst Corner reports, including last week’s report, which explores highlights from our new US shopper profiles, covering several retailers, including Amazon and Walmart.
US Online Grocery Survey 2025: Full-Basket Orders Increase as Delivery Retains Its Dominance

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Executive Summary

Coresight Research Analysis

1. Understanding, Captivating and Retaining Shoppers

2. Building Unified and Future-Ready Organizations

3. Groceryshop Key Takeaways

Introduction

Groceryshop 2025 Day Four: Coresight Research Insights

1. Understanding, Captivating and Retaining Shoppers

AI-Driven Discovery and the Shopper Journey

Left to right: Karin Chu, Vice President, Head of AI, Data Science & Analytics, Ahold Delhaize USA; Alicia LeBeouf, Head of Industry, Retail & Grocery, Meta; Simon Rodeiro, Vice President Digital Commerce & Omni-Channel Marketing, PIM Brands; and Sam Tomlinson, EVP, Warschawski

Source: Groceryshop

2. Building Unified and Future-Ready Organizations

Breaking Down Data Silos for Scalable AI

Deepak Jose, VP & Head of Data & Decision Intelligence, Niagara Bottling

Source: Groceryshop

3. Key Groceryshop Takeaways

Consumer Priorities: Health and Price

Agents Everywhere

Creators as Amplifiers

It All Comes Back to the Stores

Retail Media in the “Age of Reckoning”

Left to right: Ben Miller, VP, Original Content & Strategy, Groceryshop; Rocquan Lucas, VP, Content, Groceryshop; Chris Walton, Co-CEO, Omni Talk; and Anne Mezzenga, Co-CEO, Omni Talk

Source: Groceryshop

Other research you may be interested in:

Reasons to Read

Executive Summary

Coresight Research Analysis

Efficient and AI-Powered Grocery Operations

The Next Frontier for Retail Media (and New Revenue Streams)

3. Building Unified and Future-Ready Organizations

Introduction

Groceryshop 2025 Day Three: Coresight Research Insights

1. Efficient and AI-Powered Grocery Operations

AI and Automation in Grocery: From Experiment to Essential

Scaling Online Grocery Profitably

Lauren Steinberg, EVP & Chief Digital Officer, Loblaw Source: Groceryshop

2. The Next Frontier for Retail Media (and New Revenue Streams)

Retailers Becoming Technology Providers

Loyalty, Gamification and Monetization

Anders Mittag, Chief Commercial Officer, Lobyco, Coop Denmark Source: Groceryshop

3. Building Unified and Future-Ready Organizations

Breaking Down Silos with a Unified Demand Vision

Creating Seamless Omnichannel Experiences

Left to right: Michael Reda, VP, Omni-Channel Marketing & Insights, The Marzetti Company; Rina Hurst, VP, Digital Merchandising, Sam’s Club; and Jason Goldberg, Chief Commerce Strategy Officer, Publicis Groupe Source: Groceryshop

Other research you may be interested in:

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Executive Summary

Coresight Research Analysis

1. Efficient and AI-Powered Grocery Operations

2. Understanding, Captivating and Retaining Shoppers

3. The Next Frontier for Retail Media (and New Revenue Streams)

Introduction

Groceryshop 2025 Day Two: Coresight Research Insights

“Shark Reef” Startup Pitch Competition

Deborah Weinswig, CEO and Founder, Coresight Research Source: Groceryshop

1. Efficient and AI-Powered Grocery Operations

AI as the Next Growth Lever for Grocery

Michelle Cucchi, Product Marketing Director at Algolia Source: Groceryshop

2. Understanding, Captivating and Retaining Shoppers

The GLP-1 Shopper and Health-Driven Retail

Linda Bethea, CMO, North America, Danone (Left); and Erin Cabrey, Senior Reporter, Morning Brew (Interviewer) Source: Groceryshop

Lidl US: Efficiency, Private Brands and Supplier Partnerships

Lauren Steinberg, EVP & Chief Digital Officer, Loblaw
Source: Groceryshop

Anders Mittag, Chief Commercial Officer, Lobyco, Coop Denmark
Source: Groceryshop

Left to right: Michael Reda, VP, Omni-Channel Marketing & Insights, The Marzetti Company; Rina Hurst, VP, Digital Merchandising, Sam’s Club; and Jason Goldberg, Chief Commerce Strategy Officer, Publicis Groupe
Source: Groceryshop

Deborah Weinswig, CEO and Founder, Coresight Research
Source: Groceryshop

Michelle Cucchi, Product Marketing Director at Algolia
Source: Groceryshop

Linda Bethea, CMO, North America, Danone (Left); and Erin Cabrey, Senior Reporter, Morning Brew (Interviewer)
Source: Groceryshop

Jack Sinclair, CEO, Sprouts Farmers Market (Left); and Chris Walton, Co-CEO, Omni Talk (Interviewer)
Source: Groceryshop

Elena MacGurn, SVP, Search, Digitas (Left); and Prasanna Kumar, Global Digital Commerce Experience Director, Diageo (Right)
Source: Groceryshop

Jason Cottrell, CEO & Founder, Orium
Source: Groceryshop

Marisa Perez, SVP, Digital Commerce, PepsiCo
Source: Groceryshop

Susan Anderson, Global Head of Delivery, Uber (Left); and Jordan Berke, CEO & Founder, TOMORROW (Interviewer)
Source: Groceryshop

Jennie Bell, Managing Director, Snacks & Beverages, NielsenIQ
Source: Groceryshop