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

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.

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