Amazon’s tussle with the FTC may be grabbing headlines as of late, but there’s no shortage of buzz surrounding the tech and retail space as companies strive to innovate and advance the industry. Consumer packaged goods (CPGs), retailers, and brands are hustling to capture the dollars and loyalty of both today’s and tomorrow’s shoppers.

Recently, these evolving trends took center stage at Groceryshop, a heavyweight event in the grocery and CPG industry, gathering influential brands to discuss the latest innovations and share insights on the future of the customer experience. Here are some key takeaways:

1.

AI is the star but shines behind-the-scenes. In today’s world, a conversation around generative AI is unavoidable in any industry. At Groceryshop, the spotlight moved away from flashy AI applications and focused more on harnessing AI’s core strengths – aggregating large sets of data and facilitating learning. For retailers, AI’s utility extends beyond enhancing customer service; it’s quietly tackling real, behind-the-scenes challenges, from content management to optimizing supply chains. It’s a game-changer for administrative tasks too.

Tropicana, for example, uses AI internally (under the moniker “TropGPT”), but consumers don’t interact with it. Ben McKean, CEO of Hungryroot, noted that their platform is based around the benefits of AI, but is not really advertised. The general sense is that consumers want the magic AI brings, but they don’t necessarily want to know when AI is at work.

2.

‍Retail media is growing up fast and is a critical growth engine. Elevated digital engagement during the pandemic massively accelerated the growth of retail media. According to eMarketer, spending surged from $13.12 billion in 2019 to a projected $51.36 billion in 2023, and is expected to jump to $61.15 billion in 2024. 82% of American advertisers plan to boost their Retail Media Network ad spending this year. Rodney McMullen, CEO of Kroger, stated that “retail media was a major factor” in Kroger’s $24.6 billion purchase of Albertsons.

To regulate the “wild west” nature of this growing sector, the Interactive Advertising Bureau and Media Rating Council have now issued guidelines addressing the measurement and language consistency issues. This move will foster further growth, offering better reporting consistency for omnichannel national brands and opening doors for smaller regional players. Retail media is no longer a nice-to-have – as said by Donna Tweeten, President of Hy-Vee grocery, “I don’t know how [companies] will exist in the future without it.”

3.

A unified shopper experience is paramount. As digital becomes more prominent, the days of funneling all consumers into physical stores are gone. Leading brands emphasized the importance of cultivating long-term loyal customers through seamless, relevant, and convenient omnichannel experiences. Their sales figures back this up, with Steve Heniuh, Chief Customer Officer at Wakefern Food Corp, stating that omnichannel shoppers are “two times more valuable” than brick-and-mortar-only shoppers. Manish Sharma, VP & GM of Omni-Commerce at Kellogg’s, echoed this, saying omnichannel shoppers spend “two to four times more” than non-omnichannel shoppers.
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To create a unified experience, there must be unified inventory, pricing, and personalized promotions across all touchpoints. At the same time, it’s important to consider why customers choose certain channels and tailor experiences to reflect those decisions. Consumers expect a smooth transition between digital platforms and physical stores, with no limitations at any given time. Convenience is key.

Naturally, the confluence of these topics is evolving rapidly. But the major takeaway is that retailers and CPGs today need to be actively working on all three – AI, retail media, and a unified shopper experience – to take advantage of the land grab for shoppers’ attention on the omnichannel digital shelf.

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