Learn how grocers are focusing on rebuilding their digital foundations, and leveraging advanced fulfillment systems and retail media networks to enhance efficiency, drive revenue, and remain competitive in 2025.

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Summary Why should you download this report Survey Demographics Download
 

Summary

Digital grocery is projected to grow by 9.7% in 2025, yet profitability remains the top challenge for 93% of grocers. This report highlights how grocers address these challenges by prioritizing investments in foundational technologies that enhance operational efficiency and shopper engagement. These investments include advanced fulfillment systems, which streamline operations, and retail media networks, which generate new revenue streams by monetizing digital engagement.

The findings emphasize that rebuilding the digital foundation is essential for grocers looking to thrive in a competitive landscape. By upgrading back-end systems, integrating omnichannel capabilities, and personalizing the shopper journey, grocers can reduce inefficiencies, improve scalability, and deliver superior customer experiences. These strategies position grocers to navigate growing competition while securing long-term profitability.

 

Why should you download this report

  • Profitability is the number 1 challenge: The report reveals that 93% of grocers identify profitability as their greatest hurdle. Strategic investments in foundational systems and engagement technologies are key to addressing this issue. 
  • Rebuilding the digital foundation drives scalability: With 83% of grocers focusing on back-end technology upgrades, the report explores how modernizing these systems improves operational efficiency and enhances the ability to meet customer expectations. Prioritizing these upgrades will help grocers streamline operations and improve scalability. 
  • Advanced fulfillment systems streamline operations: The report shows that 71% of grocers plan to invest in advanced fulfillment solutions, critical for scaling digital operations while reducing logistical inefficiencies. Grocers investing in these opportunities can meet growing online demand, reduce costs, and ensure fast, accurate deliveries. 
  • Retail media networks unlock new revenue streams: Retail media platforms, prioritized by 59% of grocers, help monetize digital engagement and strengthen consumer brand partnerships. Investing in retail media will enable grocers to monetize digital platforms and strengthen brand partnerships. 
  • Personalization fosters loyalty and larger baskets: AI-driven personalization, prioritized by 53% of grocers, enables tailored shopper experiences, increasing satisfaction, transaction sizes, and repeat purchases. Grocers enabling tailored experiences from product recommendations and dynamic pricing are well-positioned to drive customer loyalty.
 

Survey Demographics

This report is based on a survey conducted in November 2024, involving 127 grocery executives. These insights focus on how grocers are rebuilding their digital foundations with advanced technologies and strategic investments to address challenges and seize opportunities in the evolving grocery landscape.