Keeping a Pulse on Key Themes from Groceryshop 2024

At The Garage Group, we are continually posing the question, “what needs to be true for brands to stay relevant?” This means we are in perpetual pursuit of understanding what’s going on in the market and how consumer needs are being met in new and different ways. In service of staying curious, we kept a pulse on the Groceryshop 2024 event held in Las Vegas earlier this month.

As an infusion of market perspective, we are sharing three themes that we’re curious to keep an eye on as they take shape in the market.

1. Navigating Inflationary Pressure from All Sides

A year ago, we leaned into the meaning of ‘value’ in the eyes of the consumer, in our Value Forward report — specifically seeking to understand how consumers were reassessing value in the face of an uncertain economy.

Fast forward a year, and a key theme at Groceryshop 2024 was how retailers are working to address their shopper’s needs in light of the inflationary pressure both consumers and retailers have been feeling. Grocery industry leaders and experts shared the complex market dynamics that exist today with some consumers being resigned to “price shopping” multiple stores to combat rising costs, while other consumers – especially younger generations – are expecting more from the products and brands they choose to endorse.

“He said it’s [convenience] just not important at the moment. People are prepared to put more effort into travel and to find the right value equation for their family.” – Ben Miller, Groceryshop referencing Ethan Chernofsky, SVP of Marketing, Placer.ai

“Our younger generation customers do not only find value, convenience, and quality very important, but how we operate our business – how do we think about healthy; how do we think about our communities; how do we think about sustainability.” – Frans Muller, President and CEO, Ahold Delhaize

2024 has seen multiple retailers launch private label brands to better meet consumer needs at affordable price points and capture this opportunity in the market. Brands like Amazon Saver and Target dealworthy, are timely launches intended to make everyday, good quality products accessible to all consumers. Others like Pretty Smart and bettergoods from Walmart, Albertsons Overjoyed, and Walgreens Premium Skin Care, are striving to hit “value” more directly by offering engaging aesthetics and ingredients previously only offered at a higher price point.

2. Firing Friction in the Shopping Experience

Leveraging an abundance of data and advanced technologies like Gen AI, retailers are unleashing these rapidly evolving capabilities to solve key consumer shopping pain points, while also improving their operational efficiencies.

As examples…

Thrive Market is investing in AI that works to help better predict what shoppers will want — particularly for new customers, so it makes it easier for online shoppers to fill their cart the first time. Rather than having to browse multiple pages to find the items they want, consumers can take an online quiz and it will pre-populate their cart with suggestions, saving time and hassle.

Sam’s Club shared how technology like its Scan & Go app is creating a fundamental shift in how people are shopping club retail. With the app, members use their phone to scan items as they put them in their cart and then pay via the app, eliminating the need to go through a checkout line. This ease allows consumers to stop in quickly to grab a few items, rather than needing to stock up. Pushing the boundaries further, Sam’s Club has also launched a store where the shoppers will only use the Scan & Go app to check out, and the store will be completely cashier-less. Additionally, inventory management technology is freeing up employees’ time, enabling them to spend more time helping members.

3. Nourishing Wellness

With consumers continuing to prioritize health and wellness, industry retail executives at Groceryshop shared that their businesses are providing nutritional and food-as-medicine services to reach consumers.

“We see food as a fundamental part of healthcare. By offering medically tailored meals and personalized nutrition advice, we can help our customers manage their health more effectively.” – Stuart Aitken, SVP, Chief Merchant & Marketing Officer at Kroger

As examples…

Kroger Health has partnered with Performance Kitchen to offer dietitian-approved meals that offer nutritional intervention for people with health conditions including diabetes, heart disease, and cancer. Kroger Health already offers services such as virtual appointments with registered dietitians, with these new food-as-medicine meals being integrated into these services.

Dollar General’s supply chain innovations are bringing fresh and nutritious food to food deserts and enabling store-level assortment customizations to deliver the variety their consumers’ desire.

Instacart Health is using its Instacart Developer Platform to let third-party app partners integrate with its AI-powered recommendations, supporting consumers in their journey toward healthier eating.