Groceryshop Day 3 Highlights: Exploring Opportunities for the Future of Grocery

The final day of Groceryshop 2023, held on September 21, 2023, focused on the future of grocery retail, exploring opportunities in unified shopping experiences, new growth avenues, and the increasing importance of health and wellness in grocery. As businesses adapt to the evolving landscape, day three provided valuable insights into how grocers can capitalize on emerging trends.

Unified Shopping Experience: Consumer-Centric Approach

The focus of day three was on the seamless integration of digital and physical shopping experiences. Consumers expect a smooth transition between channels, and grocers must ensure consistent inventory, pricing, and personalized promotions. According to Cara Keating, Chief Customer Officer at Frito-Lay North America, PepsiCo, “It starts with the consumer,” highlighting that adapting to consumer needs requires changes in perspective and product innovation.

Panel discussions also emphasized that the rise of on-the-go consumers means grocers need to rethink their product availability and ensure their offerings are suited to both in-store and digital platforms. Chad Petersen, Senior VP of E-Commerce at Lowes Foods, noted that collaboration with delivery platforms like Instacart is not seen as competition but as a way to meet consumer demand in a new way.

New Growth Opportunities: Diversification and Retail Media Networks

Courtesy of Groceryshop

As traditional grocery operations face challenges, diversification has become key to unlocking new revenue streams. Day three saw discussions on opportunities in retail media networks (RMNs), health and wellness products, and catering to “polycultural” consumers, highlighting how these trends present growth potential for grocers.

Retail Media Networks (RMNs): A New Frontier

One of the standout announcements was the launch of Hy-Vee’s retail media network (RMN), Red Media, by its Presidents Donna Tweeten and Aaron Wiese. This move comes at a time when traditional TV content is expected to decline due to industry strikes. With RMNs providing an alternative, grocers can offer brands an opportunity to advertise and reach consumers in new ways, particularly as consumer demand for content remains high. According to Tweeten, “I don’t know how [companies] will exist in the future without it,” underscoring the growing importance of RMNs in grocery’s future.

Beatriz Alejandra Núñez Jiménez, Chief Growth Officer at Walmart de México y Centroamérica, also discussed how creating relevant and personalized experiences for customers is key to unlocking the potential of retail media.

Health and Wellness: A Growing Sector

With more than 60% of adults in the US facing chronic diseases, health and wellness emerged as a major growth opportunity for grocery retailers. Irina Pelphrey, VP of Health and Managed Care at Albertsons Companies, shared how the retailer is tapping into this market with a digital wellness program that rewards customers for making healthy decisions. This program integrates loyalty rewards with health goals, emphasizing the growing link between grocery and health management.

Panelists discussed the importance of maintaining the taste and quality of healthy foods, recognizing that many consumers will not compromise on flavor for health benefits. Transparency in health claims was also stressed, with companies encouraged to provide clear, accessible data to support their health products.

Looking Ahead

The final day of Groceryshop 2023 demonstrated that the future of grocery retail lies in innovation, consumer-centric approaches, and the ability to capitalize on new growth areas such as retail media and health-conscious products. The integration of digital tools and the expansion of omnichannel experiences will continue to shape the grocery industry’s trajectory in the years to come.