As grocery stores continue to focus on enhancing customer experience through personalised services and digital integration, online grocery sales are expected to expand by 10% in 2025.
With their advantage during high inflation gone, discount brick-and-mortar chains such as Aldi and Dollar General will struggle due to increasing consumer demand for greater convenience, value and variety.
Mergers and acquisitions will be a big focus for grocery stores as they seek scale to compete with larger retailers. Industry-wide consolidation is also expected with smaller retailers forming partnerships to stay competitive against bigger industry players.
Consumers are adopting cost-containment measures including shopping at discount stores and focusing on pantry essentials. Grocery stores are investing in AI for personalized shopping experiences, inventory management and pricing optimization.
Affordability has become a major theme with consumers prioritising value. Strategies combining convenience, personalization and value will define the future of grocery stores.