Groceryshop 2024 - Summary

For the past few years, conferences have felt like platforms for the latest buzzwords or trends. From The Metaverse to AI, each year from 2020 to 2023 has been dominated by its own theme.

This year’s theme, however, felt like it was taking us back to the basics:

“Data”

As Ahold Delhaize’s President and CEO Frans Muller aptly summarized: “Strong data is the foundation of better products and a better customer experience.”

Though this may seem obvious, why does it feel like companies are returning to these foundational discussion points?

The Return of Margin Pressure

Deloitte’s Grocery Co-Leader Danny Edsall provided the clearest visual explanation. During the pandemic, grocery saw a significant boost in net profits, with margins nearly doubling to ~2%. Now, however, net margins are rapidly trending down to 1%, even lower than pre-pandemic levels.

With this kind of pressure, there are really only two ways to improve margins:

1. Increase efficiency and productivity – the responsibility of operators.
2. Discover new sales channels – the responsibility of marketers.

How Does Data Fit In?

Increasing Productivity and Efficiency

The cost to serve customers has almost tripled in the last seven years in the U.S., with nearly every operational input facing headwinds. Higher interest rates, inflation, labor costs, and increased theft have compounded the challenge.

Improving this situation requires a significant focus on the store’s operating model and the role of technology. Two core focus areas are emerging:

1. Using Data-Driven Technologies to Reduce Labor Needs: Almost every in-store labor process has been reviewed as retailers invest in labor-saving technologies. Success rates of these are mixed as highlighted by 7-Eleven’s CDO Raghu Mahadevan and Lidl’s SVP Innovation Mirko Saul. For instance, some frictionless technologies like Just Walk Out technology have been a “flop” while technologies like Computer vision and Electronic Shelf Labels (ESLs), are proving successful. For companies that can afford the significant capex and operational shifts, these technologies are already streamlining time-consuming tasks like gap scanning and price changes—tasks that typically account for 8-17% of store labor.
2. Simplifying Operations and Decision-Making: As Quorso’s often emphasizes, in-store data can be overwhelming. Poor decision-making and mismanagement can lead to ~20% loss of in-store profits. To counter this, Alimentation Couche-Tard’s VP of Operations, Helene Drolet, shared how leveraging data tools helps streamline store operations. These tools help prioritize tasks, and help stores manage the hundreds of responsibilities they handle daily. It’s becoming clear that managing coordination between different systems and tasks is just as crucial as labor savings, leading to more sales, better CSAT and better operational metrics.

Exploring New Channels of Revenue

Retail media is having its moment in the spotlight—so much so that more than 50% of vendors have magically rebranded themselves as “retail media” companies, despite being all about AI just 12 months ago. The core idea of retail media, though, is data monetization, making it critical to efficiently capture in-store data.

While much of the attention has been on monetizing customer and loyalty data—Sam’s Club’s digital ads on their scan and go platform are an example—retailers are also exploring innovative approaches. Some are using data alerts to prioritize labor for tasks like shelf replenishment or re-facings. Retail media represents a major opportunity for grocers to reclaim some of the margins lost to CPG brands in recent years.

A Final Word of Thanks

Groceryshop remains one of the best community-driven events in the industry, providing a platform for grocers worldwide to share ideas and insights. We look forward to the next event, scheduled for September 28 – October 1, 2025.