Wrapping Up Another Year in Grocery

As the year comes to a close, it’s a time for reflection—both personal and professional. The grocery industry has experienced a whirlwind of challenges and changes, from ongoing struggles in retail pharmacy to pivotal moments in mergers and technology.

In retail pharmacy, major players like Walgreens and CVS are grappling with outdated operating models that no longer serve today’s market. Walgreens introduced new leadership in 2023, followed by CVS in 2024, signaling attempts to adapt amidst mounting pressures. Both companies are seeking fresh strategies to navigate an environment increasingly shaped by changing consumer needs and heightened competition.

In the grocery sector, the saga of the Kroger–Albertsons merger finally concluded this year, albeit with complications. The merger, announced in 2022, faced significant hurdles, including scrutiny from the FTC, opposition from unions, and legal challenges from attorneys general across multiple states. While the deal has moved forward, it remains to be seen how the complexities will unfold for both retailers.

Meanwhile, Walmart continues to lead the industry. Over the past year, the retailer has cemented its position as a tech pioneer in grocery, driving innovation at an unprecedented pace. Highlights include:

• Expanded automation across fulfillment and distribution centers.
• Introducing a pay-by-bank option in September, marking a groundbreaking move in consumer payment solutions.
• Leveraging AI to enhance operational efficiency and adaptive retail strategies.

Looking ahead, the incoming presidential administration in 2025 introduces new uncertainties. While retailers like Walmart have publicly congratulated the new president, his proposed radical immigration policies could significantly disrupt the grocery supply chain. The potential loss of immigrant labor in both agricultural and retail roles could exacerbate labor shortages already lingering from the pandemic era.

As we prepare for the year ahead, the focus shifts toward listening—understanding the needs, goals, and strategies of grocers as they navigate a rapidly evolving landscape. While the challenges of 2024 remain fresh, the promise of innovation and adaptation offers hope for a stronger and more resilient grocery industry in 2025.