State of Digital Grocery: Evolve to Improve Profitability

• Explore why grocers must prioritize digital-first strategies to secure profitability and maintain market share in an evolving landscape.

Summary

As digital grocery channels mature, grocers are at a crossroads: evolve into digital-first businesses or risk losing ground to competitors. This report examines the critical strategies grocers must adopt to stay competitive, emphasizing that online profitability hinges on integrating digital channels as core components of their business, rather than viewing them as supplementary.

Grocers can no longer rely solely on traditional in-store sales. With major players capturing market share through seamless online experiences, grocers must elevate their digital capabilities, from personalization and targeted promotions to streamlined logistics. Digital transformation isn’t just about adding e-commerce—it’s about rethinking the entire customer journey to engage high-value shoppers across all channels.

The report further explores how grocers can drive profitability by optimizing digital order fulfillment, investing in automation, and building proprietary digital channels to reduce reliance on third-party platforms. These steps are essential to create a sustainable digital model that not only meets customer expectations but also enhances long-term profitability and customer loyalty.