Groceryshop Day 1 Highlights: Private Label Takes Center Stage

1. Private Label Growth Takes Center Stage

Private label products were the star of Day 1 at Groceryshop, with grocers eager to expand their offerings. Ahold Delhaize aims to grow its U.S. private label by 45%, capitalizing on consumer demand for sustainable, fresh, and tailored products. The focus is on catering to evolving consumer preferences, with private label sales making up 30% of retail sales in the U.S. However, grocers face the challenge of growing their private label without alienating CPG brands.

Ahold CEO Frans Muller emphasized that both private label and traditional brands can foster innovation, with collaboration between the two categories benefiting product development.

2. Sam’s Club Embraces Tech and Gen Z

Sam’s Club is pushing the boundaries of technology and shopping convenience. The retailer has introduced features like Scan & Go, which 30% of members now use frequently. A cashier-less store is set to open in Grapevine, Texas on October 17, reflecting the grocer’s investment in frictionless shopping.

Courtesy of Groceryshop

Sam’s Club CEO Chris Nicholas also noted that Gen Z and Millennials are more receptive to non-legacy brands, with a growing preference for social media influence over traditional advertising.

3. Dollar General’s Fresh Push Faces Challenges

Dollar General is aiming to introduce fresh foods to food deserts, but its vast network of 20,000 locations makes it challenging to maintain an efficient supply chain. With 13 fresh distribution centers, Dollar General is working to customize product assortments at local stores. Despite these efforts, the challenge of fresh food delivery is considerable, particularly given the scale of the discount retailer’s operation.

4. SpartanNash Pioneers Personalized Shopper Engagement

SpartanNash is using data-driven insights to personalize shopping experiences. By engaging customers digitally, SpartanNash has seen a 23% increase in average spending from digitally engaged shoppers. Through personalized messaging and targeted offers, the company has improved its cost ratio by 50% in 2024. The grocer’s data-driven strategy aims to foster stronger customer loyalty and better meet consumers’ needs.

5. AI and Technology Reshape Retail

AI was a major focus, with companies like Dragonfruit AI using computer vision to prevent theft and frivolous lawsuits by detecting slip-and-fall incidents in stores. Additionally, Instacart and Thrive Market are leveraging AI for better product recommendations, particularly to help new customers fill their grocery carts quickly. These advancements in AI-powered personalization are helping retailers stay competitive by enhancing the customer experience.

6. Key Data Insights

• Baby Boomers, though not driving the growth in grocery spending (Millennials lead in this), still represent 34% of sales, indicating the need to cater to this demographic.
• Foodservice traffic at retail is down by 2%, likely due to meal deals and quick-service restaurant competition. However, heat-and-eat meals have seen an uptick, suggesting a demand for easy dinner solutions.
• Signage does not significantly impact sustainable product purchases, according to an Ipsos study, highlighting that merchandising and consumer behavior are the key drivers in sustainability efforts.

Day 1 showcased how innovation, technology, and private label expansion are central to the grocery industry’s future.