Issuu

May 2026

Volume 105, Number 4 www.progressivegrocer.com

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IN PARTNERSHIP WITH

PROGRESSIVE GROCER’S 93RD ANNUAL REPORT/THE PG 100 CHECK THIS OUT Cutting-edge tech removes friction REMODELING RIGHT NOW What makes a grocery store renovation work SMOOTH OPERATIONS Take a “whole-store” approach to facility maintenance

Sam’s Club Tackles the Future of E-Commerce Why the club retailer is becoming channel agnostic

Sam’s Club SVP, E-Commerce Greg Pulsifer

May 2026

Volume 105, Number 4 www.progressivegrocer.com

Contents

105 05.26 Volume Issue 4

28 COVER STORY

Sam’s Club Tackles the Future of E-Commerce Why the club retailer is becoming channel agnostic.

16 FEATURE

32 CATEGORY REVIEW

From the Perimeter to Private Label, With 3rdParty Delivery in Between

Deli and Bakery Best Practices

Retailers weigh in on what works in these crucial store departments.

Progressive Grocer’s Annual Report finds that cautiously optimistic grocers are focusing on perimeter, private label and tech. Plus: The PG 100

36 Departments 7 EDITOR’S NOTE

The State of Our Industry

12 MINTEL

14 ALL’S WELLNESS

Coffee and Ready-to-Drink Coffee

5 Strategic Ways Supermarkets Can Support Women’s Health

8 IN-STORE EVENTS CALENDARS

64 EDITORS’ PICKS

July 2026

For Innovative Products

10 NIELSEN’S SHELF STOPPERS

Candy, Gum and Mints

66 AHEAD OF WHAT’S NEXT

Upholding the Bare Essentials PROGRESSIVE GROCER May 2026

Contents 105 05.26 Volume Issue 4

38 CATEGORY REVIEW

42 SOLUTIONS

Something Special

Unlocking the Potential of Alaska Seafood

Specialty cheese in the deli can drive traffic and sales for retailers.

ASMI illuminates how retailers can leverage the learnings of a recent Circana study. 44 SPECIAL REPORT

Making Complexity Simple

A winning checkout experience balances AI, hardware and the human touch to remove friction for both shoppers and retailers.

44 50

50 EQUIPMENT & DESIGN

The Grocer’s Guide to Remodeling in 2026 PG speaks to industry experts to find out what makes – or breaks – a grocery store renovation. 56 OPERATIONAL SPOTLIGHT

Connect Your Maintenance Systems

A “whole-store” tech approach lets retailers detect problems early. 60 TECHNOLOGY

Getting It Right

ClearDemand’s chief strategy officer highlights the importance of pricing and promotions to regional grocery retailers’ operations. 62 FEATURE

The Utility Mandate: Why 2026 Shoppers Are Swapping Inspiration for Efficiency An inaugural survey finds that consumers are focused on maximizing value and minimizing mental effort.

MADE

IN USA

GLUTEN-FREE. HIGH PROTEIN.

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Plant-based pasta made from the goodness of pulses!

GET A TASTE AT www.veggi.info

MINOT, ND

EDITOR’S NOTE By Emily Crowe

8550 W. Bryn Mawr Ave. Ste. 225, Chicago, IL 60631 Phone: 773-992-4450 Fax: 773-992-4455

www.ensembleiq.com

The State of Our Industry

BRAND MANAGEMENT SENIOR VICE PRESIDENT, GROUP BRAND DIRECTOR Eric Savitch esavitch@ensembleiq.com VICE PRESIDENT OF CONTENT Lisa Johnston ljohnston@ensembleiq.com EDITORIAL

THE 93RD ANNUAL REPORT TAKES THE PULSE OF TODAY’S FOOD RE TAIL ECOSYSTEM.

EDITOR-IN-CHIEF Emily Crowe ecrowe@ensembleiq.com MANAGING EDITOR Bridget Goldschmidt bgoldschmidt@ensembleiq.com SENIOR DIGITAL EDITOR Marian Zboraj mzboraj@ensembleiq.com

y mind can hardly fathom the fact that Progressive Grocer is presenting our 93rd Annual Report this month. Put together by our research and editorial teams, this report is a labor of love that has been a constant in the grocery industry since 1933 – the year when Franklin D. Roosevelt became president, when construction began on the Golden Gate Bridge, when the first “King Kong” movie premiered, when Prohibition ended and when my dearly departed grandmother Mary was born. The world has changed in remarkable ways since then, but grocery’s place in it all remains steadfast. Food retailers and their associates continue to provide a vital service to their communities during good times and bad, and they work to unwaveringly deliver exceptional service and value to their customers through it all.

A Look Into the Present

SENIOR EDITOR Julia Tabisz jtabisz@ensembleiq.com ASSOCIATE EDITOR Samantha Schober sschober@ensembleiq.com CONTRIBUTING EDITORS Mike Duff, Jim Dudlicek and Debby Garbato ADVERTISING SALES & BUSINESS ASSOCIATE PUBLISHER, REGIONAL SALES MANAGER Tammy Rokowski (INTERNATIONAL, SOUTHWEST, MI) 248-514-9500 trokowski@ensembleiq.com REGIONAL SALES MANAGER Theresa Kossack (MIDWEST, GA, FL) 214-226-6468 tkossack@ensembleiq.com SENIOR ACCOUNT EXECUTIVE Johanna Lupardus (CT, DE, MA, ME, RI, SC, TN, NH, VT, MD, VA, KY) 330-990-4635 jlupardus@ensembleiq.com PROJECT MANAGEMENT/PRODUCTION/ART PRINT DESIGNER Catalina Carrasco cgonzalezcarrasco@ensembleiq.com

Put together by our research and editorial teams, this report is a labor of love that has been a constant in the grocery industry since 1933.

ADVERTISING/PRODUCTION MANAGER Maria del Mar Rubio mrubio@ensembleiq.com

We learned a lot from the grocers who completed our State of the Industry survey this year, starting with the fact that they’re more optimistic about the year ahead than they were in 2025, despite anticipating rising operational costs and inflation. As was the case in 2025, however, food retailers remain most concerned about labor, including recruitment, retention and training, followed by increasing costs, macroeconomic conditions, wages and benefits, and competitive threats, respectively. Grocers large and small are making moves across their operations to boost sales and customer visits, including investment in comprehensive health-and-wellness services. They’re also expanding foodservice programs, prioritizing retail media and making major investments in meat, private label, loyalty programs and technology upgrades. While I’m sure none of this is breaking news to you, I hope that the information shared in this year’s Annual Report (starting on page 16) gives you some fresh insight into where our industry stands today and where it’s headed tomorrow.

SENIOR DIRECTOR OF MARKETING Nicola Tidbury ntidbury@ensembleiq.com SUBSCRIPTION SERVICES LIST RENTAL mbriganti@anteriad.com SUBSCRIPTION QUESTIONS contact@progressivegrocer.com

CORPORATE OFFICERS CHIEF EXECUTIVE OFFICER Jennifer Litterick CHIEF FINANCIAL OFFICER Jane Volland CHIEF OPERATING OFFICER Derek Estey CHIEF PEOPLE OFFICER Ann Jadown

PROGRESSIVE GROCER (ISSN 0033-0787, USPS 920-600) is published monthly, except for July/August and November/December, which are double issues, by EnsembleIQ, 8550 W. Bryn Mawr Ave. Ste. 225, Chicago, IL 60631. Single copy price $18.20, except selected special issues. Foreign single copy price $21.80, except selected special issues. Subscription: $134 a year; $246 for a two year supscription; Canada/Mexico $182 for a one year supscription; $249.90 for a two year supscription (Canada Post Publications Mail Agreement No. 40031729. Foreign $182 a one year supscription; $249.90 for a two year supscription (call for air mail rates). Digital Subscription: $78 one year supscription; $144 two year supscription. Periodicals postage paid at Chicago, IL 60631 and additional mailing offices. Printed in USA. POSTMASTER: Send all address changes to brand, 8550 W. Bryn Mawr Ave. Ste. 225, Chicago, IL 60631. Copyright ©2024 EnsembleIQ All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI 48106. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Emily Crowe Editor-in-Chief ecrowe@ensembleiq.com PROGRESSIVE GROCER May 2026

IN-STORE EVENTS

Calendar S

07.26

French-American Heritage Month National Baked Bean Month National Blueberry Month National Corn Month

National Gingersnap Day

On this date, the first Walmart store opened for business in Rogers, Ark., in 1962.

Canada Day

National Grilling Month National Hemp Month National Horseradish Month National Peach Month

National Eat Your Beans Day. They’re packed with protein!

Independence Day Jackfruit Day

National Bikini Day. This is the perfect opportunity to promote sunscreen and other skin care products.

National Simplicity Day. Think about how you can make processes easier for customers and associates alike.

National Ice Cream Day. Really, this could be any day in July.

National Disability Independence Day. Profile those of your associates who aren’t letting any challenges stand in their way.

Take Your Webmaster to Lunch Day. Thank them for their hard work, and go over some future plans for your site.

Beef Tallow Day. Are your in-house fries made with this trending ingredient? If so, let everyone know!

Moon Day. Mark the occasion when the Eagle landed in 1969 with some lunarthemed art from your younger customers.

National New Jersey Day. Highlight the Garden State’s bounty of food and beverages.

8 progressivegrocer.com

National Day of Rock ’n’ Roll. Whether you go for classic tunes or obscure indie music, today’s the time to get your customers grooving in the aisles.

National Be Nice to Bugs Day. Beneficial insects, like bees and ladybugs, are friends to us – and the planet.

Invite an Alien to Live with You Day. While you’re at it, introduce your E.T. roomie to Earth cuisine.

National Soccer Day. Team up with a local league on exciting promotions, in-store and on the field.

Be a Kid Again Day. That could include indulging in nostalgic childhood snacks.

World Youth Skills Day. Supermarkets are the first workplaces for many young people, so encourage your teen employees to learn as much as they can on the job.

World Brain Day. Tout your range of foods, beverages and supplements that help improve cognitive function.

Rain Day. Offer wetweather recipes and activities for families stuck indoors.

International Emergency Kit Day. Make sure that yours is up to date.

Artificial Intelligence Appreciation Day. Used correctly, this tech can be a valuable resource.

National Gorgeous Grandma Day. Sponsor a contest for glamorous grannies, with a shopping spree as the grand prize.

National Father-inLaw Day. For those who have one, a small token of appreciation is in order.

National Kitten Day. Direct new cat moms and dads to the pet care section.

National Tattoo Day. Any food-related ink among your customers and staff? Have them post pics on your social media channels.

National DriveThru Day. If you offer such services, emphasize their convenience and ease of use.

World Ranger Day. Stores near national parks can offer these intrepid workers a special discount.

National Swimming Pool Day. Help shoppers create the right menu for an epic poolside party.

National Caviar Day. Since fish eggs are having a moment among younger consumers, offer a guide to the most affordable varieties.

Culinarians Day. This is the time to celebrate the chef(s) responsible for your prepared food offering.

FLAVOR THAT FEELS LIKE HOME. From GOYA’s iconic pantry essentials to popular snacks like Maria Cookies, our products are trusted for their quality and flavor. With a wide-reaching consumer base and high turnover, GOYA® Maria Cookies deliver reliable sales in any

setting. Keep your store stocked and sales strong.

Contact your GOYA representative or email salesinfo@goya.com | Trade.goya.com

FRONT END

Shelf Stoppers

Candy, Gum and Mints Dollar Sales

% Change Year Ago

Unit Sales

%% Change Year Ago

$14,783,736,078

6.8%

3,167,248,165

-2.4%

Category

Chocolate-Multiserve

Average Unit Price

Confections-Multiserve

$8,289,860,123

4.7%

3,057,046,667

2.5%

Chocolate-Single-Serve

$3,033,270,209

11.4%

1,689,925,455

2.9%

Gum-Sugar-Free

$2,121,511,298

6.0%

670,957,110

-0.9%

$900,219,455

1.1%

584,107,350

-1.5%

$30,986,479,822

6.4%

9,827,676,552

0.3%

Confection-Single-Serve Total Category

$3.15

for all candy, gum and mints, up 6.1% compared with a year ago

$4.67

for multiserve chocolate items, up 9.4% compared with a year ago

Source: NIQ, Total U.S. (all outlets combined) during the 52 weeks ending March 14, 2026; NielsenIQ Retail Measurement | US NIQ Total Store Inc Fresh - 445 - Weekly (Synd) | Entire Dataset Plus NPI Charts

Index by Age of Head of Household Multiserve Chocolate

Multiserve Confections

Single-Serve Chocolate

Sugar-Free Gum

Regular Gum

Age 18-24

103

115

148

Age 25-34

Age 35-44

111

102

101

117

Age 45-54

101

117

110

130

116

Age 55-64

117

103

109

112

103

Age 65-74

125

105

Age 75 or More

110

$2.71

for multiserve confections, up 2.2% compared with a year ago

$1.79

for single-serve chocolate, up 8.2% compared with a year ago

Source: CAM Household Demographics

Value Per Occasion

$3.16

What is the value per occasion for sugar-free gum versus the year-ago period per generation? Greatest Generation

Boomer

Gen X

for sugar-free gum, up 7.0% compared with a year ago Gen Y/Gen Z

$1.54

$4.65

$5.01

$4.71

$4.15

up 10.4% compared with a year ago

up 5.1% compared with a year ago

up 5.4% compared with a year ago

up 7.7% compared with a year ago

Source: NIQ, Total U.S. (all outlets combined) during the 52 weeks ending Feb. 21, 2026

10 progressivegrocer.com

for single-serve confections, up 2.7% compared with a year ago Source: NIQ, Total U.S. (all outlets combined) during the 52 weeks ending March 14, 2026

MINTEL CATEGORY INSIGHTS

Global New Products Database

Coffee and Ready-to-Drink Coffee What You Need to Know  U.S. consumers are devoted and enthusiastic coffee consumers, yet dynamic market conditions and evolving generational interests and habits are shifting the market from being less about routine comforts and more about variety and exploration.  Coffee is increasingly becoming a foundation for customization for younger cream/creamer users. This opens up space for coffee formats that provide a base for customization – e.g., espresso formats, instant coffee, coffee concentrates. It’s also making cream/creamer innovation an even greater destination for exploration.  Elevated coffee prices are expected to continue to climb under enacted tariffs, causing consumers to make shifts in coffee purchases. Segments like instant coffee, whose momentum began in the past two years, will continue to demonstrate its balance of accessibility, customizability and proven quality.

FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400

What Consumers Want and Why

Opportunities

 With coffee prices on the rise, most consumers will make shifts to current habits, leading consumers to prepping coffee more often at home. This presents an opportunity to support the athome barista in crafting personalized coffee experiences that fit evolving budgets. Younger generations’ interest in expanding their at-home coffee setups will be a longer-term opportunity for brands to support coffee rituals, too.

Even when facing a more universal shift like heightened coffee prices, changes that consumers would make to coffee habits are personal. Most commonly, consumers will turn to at-home coffee more – somewhat reminiscent of the pandemic-spurred at-home barista trend, but now with value a greater piece of the puzzle. Brands have a strong opportunity to showcase adaptability to support these personal coffee-making habits across formats, as just 13% report not making changes to habits in a higher-priced coffee environment.

 There’s a growing desire for coffee drinks that contribute to beverage blurring, which can take a drink in different directions. Emerging interests in previously niche spaces like different caffeination levels can extend occasions into new dayparts, while functional coffees expand on coffee’s inherent functionality of energy.  Younger generations continue to shift coffee from less of a routine beverage to a ritual experience that allows variety and flexibility. Supporting these switching behaviors, whether by mixing in more affordable formats or switching between hot and cold coffee, can embrace the notion that this variety serves different purposes and contributes to coffee enthusiasm.

The dynamic nature of the coffee market is driven by consumers’ reliance on and interest in coffee that fits more diverse needs. The “hot” topic of coffee temperature, for instance, must keep in mind that consumers are looking for both hot and cold varieties – often to serve different purposes. Beyond temperature, the desire for coffee that doesn’t deliver its inherent functionality (energy) indicates the opportunity for different caffeination levels that extend coffee occasions throughout an entire day. Overall, consumers are seeking out coffee experiences that can be customized to fit their personal needs. The foundation for anticipation is there with coffee enthusiasm, but establishing more loyalty and connection between consumers and brands is becoming more important as variety becomes more of the norm for younger generations.

12 progressivegrocer.com

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ALL’S WELLNESS

By Barbara Ruhs, MS, RDN

5 Strategic Ways Supermarkets Can Support Women’s Health

MEE TING RE AL-LIFE NEEDS REPRESENTS A POWERFUL OPPORTUNIT Y FOR RE TAILERS. hen we talk about women’s health in food retail, the conversation often focuses on supplements, but today’s shoppers are increasingly turning to food as the solution 4. Normalize Convenience Without over pills or powders. For superCompromising Nutrition markets, this shift represents a For many women, convenience isn’t a shortcut — it’s a health strategy. Busy powerful opportunity, as women schedules, mental load and fatigue mean drive the majority of grocery that prepared meals and frozen meal startpurchasing decisions. Rather than ers are often essential. Expanding access treating women’s health as a niche category or trend, retailers can address it in to affordable better-for-you options allows meaningful, practical ways that support everyday living. women to meet their needs without Here are five strategic, trend-driven Rather than treating women’s having to sacrifice nutrition. ways that supermarkets can help women optimize their health. health as a niche category or 5. Embrace Plant-Forward Eattrend, retailers can address it ing Without Absolutes 1. Make Protein More Accessible— in meaningful, practical ways Many women today identify as and More Approachable flexitarian, preferring a plant-forProtein is everywhere in today’s food that support everyday living. ward approach without eliminating culture, yet it remains under-consumed animal products. What they want is choice, among women — especially for women in midlife, when muscle mass naturally flexibility and foods that still taste good. declines with hormonal changes. Women are often balancing work, caregiving, Offer blended proteins, plant-based staples budgets and time constraints, and need meal solutions that optimize energy, and affordable options that encourage strength and satiety for themselves and their families. Retailers can meet that experimentation without forcing labels or need by making higher-protein options easy to find throughout store — in the rigid definitions. When health is framed as dairy section (cottage cheese, high-protein yogurts); center store (canned flexible rather than restrictive, it feels more beans, fish, chicken); frozen foods (ready-prepared meals); or in the perimeter. attainable and sustainable. Framing protein as daily nourishment for strength and staying power, not as a performance nutrient, helps normalize it as part of everyday eating. 2. Support Bone Health Beyond the Dairy Case Bone health is often associated with milk alone, but many women are seeking broader, food-based approaches to preventive health and aging well, long before menopause. Supermarkets are uniquely positioned to reframe bone health as a whole-store conversation. While milk and other calcium-rich foods are important for bone health, vitamins D and K, phosphorus, magnesium, and boron also support bone health and can be found throughout the store, from the seafood counter (fatty fish) to the center store (canned seafood) to the produce department. Food-first messaging feels safer, simpler and more trustworthy to shoppers, especially when it connects the dots across the store. 3. Simplify Stress-Smart and Gut-Friendly Choices The growing intersection of gut health and mental wellness is driving demand for foods linked to building a better microbiome. Retailers that support shoppers in their journey to discover more gut-friendly foods are educating and building loyalty at the same time. Grouping probiotic-rich foods in a single location like Sprouts Farmers Market has done is a simple approach to building sales through sensible, strategic merchandising tactics.

14 progressivegrocer.com

Use Clear, Credible Education to Build Trust

Social media has not only amplified women’s health conversations, but also misinformation. Retailers that invest in clear, credible education stand out. Integrating registered dietitians’ recommendations and tips into shelf tags, digital content and in-store resources helps ground messaging in expertise. When women know that information comes from a professional, it feels trustworthy rather than trendy. Retailers that thoughtfully and consistently support women’s health don’t simply earn transactions – they earn loyalty.

Barbara Ruhs, MS, RDN, is a registered dietitian nutritionist and owner of MarketRD.com. She is a leading voice in retail health promotion and a former supermarket dietitian. Connect on LinkedIn @BarbRuhs

Storewide Merchandising Solutions

Y E A R S of

American Manufacturing

WonderBar Merchandiser ®

For coolers, freezers and center store

Pusher Hook and Display Hook Label & Sign Holder System

Auto-feed Wire Tray System Clear Scan® AdjustaView ® Label System

Glass, Wood & Solid Shelf Label Holders

Glass, Wood & Solid Shelf Label Strips

Wire Basket & Wire Shelf Label Strips

Magnetic Pallet Rack Label Strips

Electronic Ticket Label Strips & Holders

Wire Basket & Wire Shelf Label Holders Flip Scan® Hooks, Label Holders & Signing Accessories

WonderBar Trays ®

More ways to boost productivity

Mini Tray

Made from U.S. steel and heavy-duty wire frames. n Multiple-Depths range from 13" to 24". n Adjustable-Widths adapt from 1 3/4" to 17 1/2". n

Radius or Square Tray Sidewalls

Dual Lane Tray

Mini Tray with Finger Product Stop

Tool-free installation. n Bar and shelf capable. n Auto feed any product. n

Oversize Double-Wide Tray

Standard Tray with Locking, Molded Pusher

Create Exciting Cross-Sells with Dual Lane merchandising

WonderBar® Dual Lane Trays n Fit many more items, sell families of products in different sizes and increase impulse buying with cross-sells and adjacencies.

Asymmetrical lanes sell different-width products.

Each lane adjusts to fit products as small as 13/4" wide.

Unique design features a separate paddle to push each item forward individually in its own lane.

Display Cheese & Salad Improve rotation and reduce shrinkage

Air baffles maintain product temperature and extend shelf life. n Durable cooler-capable steel construction ensures long life. n Trays lift out for rear restocking and proper rotation. n Versatile spring tension is gentle on delicate produce. n

WonderBar® Trays n Face more packages, accommodate a wider range of shapes and sizes, restock easily, and manage dated produce better.

Pouch Hook Merchandising ™

A new venue of product promotion

Pouch Hook™ Merchandising n Standard and Gravity-Feed options keep items forwarded and automatically faced. n

Tool-free installation on most common gondola and cooler uprights.

Stocked in 4 lengths compatible with all standard shelf sizes allowing mixed use in display.

Flip-front Label Holder swings up for easy access and product removal.

Protect Your Merchandise Anti-theft security hooks

Scan Lock® Hooks n Easy-to-use, inexpensive key-lock system. n Prevent the removal of any stock or display 1 or 2 items unlocked to prevent sweeping. Anti-Sweep™ Hooks n Camel-back profile prevents sweeping while providing direct access for customers. n Flip Scan® Label Holder swings up and out of the way. n Use of plain-paper labels can save up to 65% on labels and up to 75% on labor.

Adjustable Merchandising Tray

AMT ® for dairy, freezer and center store

Adjustable width trays, designed Molded in openings improve for yogurts, ice cream, and other refrigeration air circulation. difficult to organize products. n Top-tier sidewall available for n Trays lift out with easy-grip support and containment of handles to allow quick tall or multi-tier products. restocking or cleaning. n

Clear Scan Label Holders ®

The complete shelf edge labeling system

Easy-to-use design flexes open at a touch for fast, drop-in, plain-paper labeling, then automatically springs shut to secure the label in place. n Unsurpassed range of sizes, styles & lengths. n Labels shielded from dirt, spills, moisture & wear so they last longer, read easier & scan more accurately. n Long lasting PVC construction retains “memory” and shape, resists yellowing, darkening & aging. n

Choice of magnetic, adhesive or clip-on mounting systems.

Cooler-Capable EWT

™

Expandable Wire Tray for refrigerated retail

Quick drop-on, one-piece installation. n Accommodates any style or size package adjusting from 33/8" to 171/2" lane width. n Various built-in mounting capabilities available based on shelf component. n

Molded pusher paddle available, both locking and non-locking styles with wire- or metal-sided trays. n Auto feed any product. n Clear or Imprinted Front Product Stops. n Vends oversize items like pizza.

Display & Scan Hooks Hooks for every purpose

Right Angle Label Holder Hook

A simple, inexpensive design. n Use with Quick Back® to maximize product density, provide easy mounting and relocation of stocked hooks in tight places, under shelves or in fully loaded displays, and speed re-merchandising and display changeover. n

Economical All Wire Hook

Slatwall Hooks

Safer, rounded Ball-End Tips are available on all hooks at no extra charge and no minimum order. n Use the Peg Hook Overlay to quickly convert All Wire Hooks to Scan Hooks. n

Being Seen Means Being Sold

Y E A R S of

American Manufacturing

STAY I N G A H E A D O F W H AT ’S N E X T GET INSIDER INSIGHTS ON GROCERY’S BIGGEST TRENDS AND CHALLENGES WITH PROGRESSIVE GROCERS’ EDITORS AND INDUSTRY GUESTS

SUBSCRIBE TO THE PODCAST

IN PARTNERSHIP WITH

FROM THE PERIMETER TO PRIVATE LABEL, WITH 3RD-PARTY DELIVERY IN BETWEEN WITH CAUTIOUS OPTIMISM, GROCERS FOCUS ON PERIMETER, PRIVATE LABEL AND TECH. By Julia Tabisz

16 progressivegrocer.com

ollowing a period of particular volatility in an already dynamic environment, industry stakeholders might be in store for a bit more stability in 2026 than they’ve experienced in recent years. It’s a bit of relief that’s being welcomed by grocery retailers – but they’re also approaching this relief with caution. Progressive Grocer’s 2026 State of the Industry Survey found more optimism in grocery retailers this year, with survey results also indicating that their optimism is tempered by ongoing concerns. The survey also found, though, that grocers have their eye on growth, particularly when it comes to private label, technology and key perimeter departments. Grocers surveyed by PG’s research team shared their perspectives and the ways they’re moving their businesses forward this year through a food retail landscape defi ned by cautious optimism.

SIGNAGE, PRIVATE LABEL AND LOYALTY PROGRAMS PG’s survey found that grocery retailers are focusing their business strategies on in-store signage, private label and store-brand products, and community involvement. Ninety percent of respondents said that in-store signage is either the most or second-most important strategy for their company this year, followed by private labels and store brands, at 89%, and community involvement, at 87% – making these the top three business strategies for grocers in 2026. Digging a bit deeper, PG’s survey found that in-store signage is the top strategy for consumer marketing and advertising this year – marking the fourth consecutive year that this has been the top marketing strategy for grocers. Social media is a fairly distant second to signage in grocers’ marketing strategies this year. Just over three-quarters of respondents (77%) said that social media marketing is the most or second-most important consumer marketing or advertising strategy for their companies. While it still trails in-store signage by a significant margin, social media saw a 14-percentage-point jump from last year’s survey, marking notable growth. PG’s survey also found that private label and store brands have risen significantly in importance compared with last year. The 89% of respondents who said that private label and store brands are the most or second-most important strategy for their companies when it comes to enhancing the in-store experience through merchandising and brand enhancement is a 16-percentage-point increase over last year’s survey. In fact, across the Instacart Marketplace platform, retailer private label saw consistent dollar and share growth across major grocery departments from 2023 to 2025, with snack mixes posting share growth of 5.52 points, cereal and granola bars posting growth of 4.18 points and nuts growing 3.54 points during that period, according to data shared by Instacart.

GROWTH OF FRESH PERIMETER AND PREPARED FOODS 77% of retailers said that prepared foods/foodservice is a top business strategy this year, 75% chose full-service deli/meat/ bakery, 72% opted for seasonal special events (catering) and 69% chose on-site butchers, with 56% of retailers saying that deli and prepared foods are tied as the No. 1 traffic-driving departments.

Importance of strategies for MERCHANDISING / BRAND ENHANCEMENT 89%

Private label / store brand

77% 75% 74% 72% 67%

Prepared foods / foodservice Full-service deli / meat / bakery Signature products Locally sourced products Cross-merchandising

51%

Curbside pickup

43% 39% 38% 34%

BOGOs Meal solution stations Store-within-store specialty departments In-store pharmacy In-store financial services or other services

18 progressivegrocer.com

At the same time, 77% of grocery retailers said that prepared foods and foodservice are one of their top two strategies related to merchandising and brand enhancement, followed by full-service deli, meat and bakery, at 75%. This illustrates the growth opportunity that grocers are seeing this year in the fresh perimeter and prepared foods. Loyalty programs lead grocery retailers’ consumer engagement strategies this year, the survey found, with 84% of respondents saying they’re the most or second-most important strategy for engagement in 2026. This marks a 12-percentage-point increase for loyalty over last year’s survey. Last year, in-store service support was the top consumer engagement strategy, while this year, it came in second, at 79%.

IN PARTNERSHIP WITH

KEY BUSINESS STRATEGIES: Summary CONSUMER MARKETING / ADVERTISING

90%

In-store signage

77%

Social media marketing

64%

Email marketing / Mobile app marketing

MERCHANDISING / BRAND ENHANCEMENT

CONSUMER ENGAGEMENT

89%

84%

Private label / store brand

77%

Prepared foods / foodservice

75%

Full-service deli / meat / bakery

Loyalty program

79%

In-store service support

71%

Customer relationship marketing / Social media

Online customer support virtual assistants and chatbots ranked the lowest among grocery retailers’ consumer engagement strategies this year – 33% of respondents ranked them as the most or second-most important strategy in 2026. However, that’s a 16-percentage-point increase from last year, illustrating that the technology has grown significantly in importance since 2025. Community involvement is grocery retailers’ top strategy for enhancing the in-store experience through customer interaction for the fourth consecutive year, PG’s survey found. Eighty-seven percent of respondents said that community involvement is one of their top two strategies for customer interaction this year. Seasonal special events followed, at 72%, which marks a notable 13-percentage-point increase from 2025. PG’s survey also found that on-site butchers remain a key strategy for in-store services this year, with 69% of respondents saying they represent the most or second-most important strategy for enhancing the in-store experience through in-store services. This marks an eight-percentagepoint increase from last year, and 2026 is the fourth year in a row that on-site butchers are grocery retailers’ top instore service strategy.

RISE IN DIGITAL MARKETING 64% of retailers said that mobile app marketing (up 11 points) and 61% said that digital and in-store retail media (up eight points) are top consumer marketing and advertising strategies.

CUSTOMER INTERACTION

IN-STORE SERVICES

87%

69%

Community involvement

72%

Seasonal special events

59%

Product sampling / demos

On-site butchers

49%

Community programming

36%

Seafood specialists

THIRD-PARTY DELIVERY KEY TO OMNICHANNEL GROCERY SHOPPING PG’s survey found that grocery retailers are increasingly recognizing the value of personalization, digital loyalty cards and delivery for their customers. In fact, these represent the top three smartphone apps or features that respondents said their customers fi nd most valuable. Fifty-seven percent of respondents said that retailer apps for personalized discounts and product recommendations are the most valuable to their customers – a 10-percentage-point increase over last year. Retailer apps for scanning digital loyalty cards followed, at 44% – a nine-percentage-point increase. Retailer or third-party apps for delivery came in third, at 39%, which is a significant distance from fi rst and second place, although it represents a notable 19-percentage-point increase over last year. It’s worth noting that PG’s survey also found that third-party delivery is the top omnichannel offering among grocery retailers in 2026, showing significant growth since last year. More than three-quarters of survey respondents (77%) said that they currently offer delivery through a third-party vendor – a 13-percentage-point increase from PG’s 2025 survey. The growth is even steeper when we add in respondents who said that they plan to add third-party delivery in the near future. This year, PROGRESSIVE GROCER May 2026

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Which smartphone apps / features do customers value most when grocery shopping? Retailer app for personalized discounts / product recommendations

57% 44% 39% 38% 36% 36% 31% 31% 30%

Retailer app for scanning digital loyalty card Retailer app or third-party app for delivery Retailer app for digital flyers Retailer app or third-party app for ordering online, picking up curbside Retailer app or third-party app for ordering online, picking up in-store Mobile wallet app Scanning QR codes in-store Retailer app for shopping list / order history Retailer app or third-party app for recipe recommendations / meal planning Third-party app for price comparison / digital flyers None of the above

DIGITAL GROCERY 39% of retailers cited retailer/ third-party delivery apps as among the most valued customer features (up 19 points).

20 progressivegrocer.com

5% 5%

OMNICHANNEL SERVICES No plan to add in near future

Delivery (third-party vendor) Mobile shopping app Order online for curbside pickup (retailer-supported / in-house) Order online for in-store pickup (retailer-supported / in-house) Order online for in-store pickup (third-party vendor)

87% of grocery retailers said that they either currently offer third-party delivery or plan to do so, compared with 68% who said the same last year. That’s an interesting contrast to grocery retailers’ take on retailer-supported or in-house delivery, an issue on which, according to PG’s survey, respondents are split. Fifty-one percent of grocery retailers said they currently offer retailer-supported or in-house delivery or plan to offer it in the near future, compared with 49% who said that they have no plans to add either to their omnichannel services in the near future. This begs the question of whether grocery retailers are fi nding a higher return on investment in partnering with a third-party delivery vendor as opposed to managing that omnichannel offering themselves.

21%

Delivery (retailer-supported / in-house) Order online for curbside pickup (third-party vendor) In-store mobile product scanning Ordering kiosks Delivery via autonomous vehicles

Plan to add in near future

Currently offer

13% 10% 77% 23% 11% 66% 30% 11% 59% 30% 11% 59% 34% 11% 54% 49% 5% 46% 46% 11% 43% 46% 25% 30% 67% 16% 16% 93% 2% 5%

TARGETING TECH INVESTMENTS, KEY PERIMETER DEPARTMENTS Reflecting on their investments over the past few years, more than a third of PG’s survey respondents (34%) said that private labels and technology upgrades are the top investments they’ve made in the last one to three years, respectively. Moving forward, tech investments will remain a top priority, with 39% of survey respondents saying that tech upgrades are the best investment their company can make to be successful in the next one to three years.

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Meanwhile, grocers’ investment in private label looks poised to taper off in the coming years. Just 13% of respondents to PG’s survey said that private label and store brands are the best investment for their company to make in the next one to three years. Instead, grocery retailers are targeting hiring, training and employee retention programs for future investments. Thirty-four percent of respondents said that these programs are the best investment their company can make to set itself up for success in the next one to three years. Beyond tech and employees, PG’s survey found that grocery retailers will be looking to a combination of key perimeter departments – meat and produce – to drive sales this year. Seventy-nine percent of respondents said this year that the meat department is the most successful at generating sales – a whopping 30-percentage-point increase from last year’s survey. Meanwhile, 28% anticipate that the meat department will drive the greatest sales growth at their stores in 2026 – a 13-percentage-point increase over last year. Seventy-two percent of respondents said that the produce department is the most successful at generating sales in PG’s 2026 survey, which is a 20-percentage-point increase from PG’s 2025 survey. Further, while just 11% of grocery retailers anticipate that produce will drive the greatest sales growth this year, that’s still a slight four-percentage-point increase over last year.

TOP DEPARTMENTS FOR ANTICIPATED 2026 SALES GROWTH

28% Meat 16% Private label 11% Produce 8% Prepared foods Charts’ source: 2026 PG State of the Industry Study. Progressive Grocer’s 2026 Annual Report is based on a nationwide survey of industry professionals at national, regional, independent, specialty and convenience stores. Participants included store owners, store managers, category managers, corporate executives, retail/store operations executives, c-suite leaders, and sales, advertising and marketing executives.

22 progressivegrocer.com

TOP FUTURE INVESTMENTS (to make in the next 1-3 years)

39% 34% 28% 26%

Technology upgrades / new investments Improve hiring, training, retention programs Upgrade pricing / promotions solutions Remodel / invest in existing stores

25% 25%

Upgrade infrastructure for better efficiencies Enhance social media strategy Invest in private label / store brands

13%

Close underperforming stores

13% 13% 11% 10%

Build new stores Overhaul loyalty program Launch / expand retail media Develop / expand foodservice program Focus more on health-and-wellness services Execute on geographic expansion Change store format (e.g., smaller stores, bigger stores, new formats)

10% 8% 7% 7%

GROWING EXPECTATIONS FOR TECH INVESTMENT 62% of retailers expect their technology spend to increase in 2026 (up 17 points), while 28% cited keeping up with technology advancements as a top concern (up nine points). However, just 29% described their omnichannel strategy as “advanced,” while 46% said that they’re still in the “developing” stage. This year, most grocery retailers will be looking to social media as the top tool for customer engagement. Ninety-five percent of respondents told PG this year that they use social media to engage with customers, up 10 percentage points from last year. In-store customer service desks will also be key for customer engagement in 2026, with 72% of respondents saying that they use them to engage with customers – a 13-percentage-point increase over 2025. Loyalty card data is a customer engagement tool for 69% of grocery retailers this year, PG’s survey found, a significant 18-percentage-point increase over last year’s survey. At the same time, just over half of respondents (51%) said this year that they use loyalty card data to improve the way they do business, marking a 15-percentage-point increase from last year.

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Rank

Company

Fiscal YearEnd Revenue (In Millions of Dollars U.S.)

Walmart U.S.

$ 483,000

$ 462,400

4.46%

4,611

Amazon

$ 426,305

$ 387,497

10.02%

640

Andrew R. Jassy, CEO

Costco (U.S.)

$ 200,046

$ 184,143

8.64%

629

Ron Vachris, President and CEO

The Kroger Co.

$ 147,600

$ 147,123

0.32%

2,731

Greg Foran, CEO

CVS Health (Pharmacy/Consumer Wellness Segment)

$ 139,367

$ 124,500

11.94%

9,000

Len Shankman, President

Walmart International

$ 130,400

$ 122,000

6.89%

5,566

Chris Nicholas, President and CEO

Walgreens Boots Alliance (U.S Retail)

$ 121,000

$ 115,778

4.51%

8,450

Mike Motz, CEO

Target Corp.

$ 104,780

$ 106,566

-1.68%

1,995

Michael Fiddelke, CEO

Prior Year

Percent Change

Store Count

Sam's Club (U.S.)

$ 93,000

$ 90,200

3.10%

601

Albertsons Cos.

$ 83,173

$ 80,391

3.46%

2,244

Top Executives David Guggina, President and CEO

Latriece Watkins, President and CEO Susan Morris, President and CEO

Publix Super Markets

$ 62,749

$ 59,700

5.11%

1,432

Kevin Murphy, CEO

Ahold Delhaize USA

$ 53,100

$ 54,200

-2.03%

2,017

J.J. Fleeman, CEO

H-E-B

$ 50,000

$ 46,500

7.53%

455

Dollar General

$ 42,724

$ 40,612

5.20%

20,893

Todd Vasos, CEO

Pilot Co.

$ 42,198

$ 46,891

-10.01%

757

Adam Wright, CEO

Alimentation Couche-Tard (U.S.)

$ 41,597

$ 43,911

-5.27%

7,115

Alex Miller, President and CEO

Costco (Canada)

$ 36,923

$ 34,874

5.88%

110

Pierre Riel, EVP/COO, Costco International Eric Winn, CEO

Roxanne Orsak, President

C&S Wholesale Grocers

$ 34,000

$ 33,000

3.03%

200

Loblaw Cos. Ltd.

$ 33,474

$ 31,452

6.43%

2,504

United Natural Foods Inc.

$ 31,784

$ 30,980

2.60%

Sandy Douglas, CEO

Meijer Inc.

$ 27,422

$ 26,800

2.32%

276

Rick Keyes, President and CEO

7-Eleven Inc. (U.S. Only)

$ 26,300

$ 29,390

-10.51%

12,325

Stanley Reynolds, President and Co-CEO

ALDI U.S.

$ 25,900

$ 24,000

7.92%

2,600

Atty McGrath, CEO

Love's Travel Stops & Country Stores.

$ 24,794

$ 24,500

1.20%

669

Greg Love and Frank Love, Co-CEOs

Empire Company Ltd. (Sobeys)

$ 22,390

$ 22,400

-0.04%

1,600

Pierre St-Laurent, President and CEO

Trader Joe's Co.

$ 21,980

$ 19,843

10.77%

600

Bryan Palbaum, Chairman and CEO

BJ's Wholesale Club

$ 20,958

$ 20,045

4.55%

263

Robert Eddy, President and CEO

Wakefern Food Corp.

$ 20,700

$ 20,100

2.99%

380

Mike Stigers, President

Wawa

$ 19,800

$ 18,800

5.32%

1,100

Chris Gheysens, Chairman and CEO

Dollar Tree

$ 19,412

$ 17,579

10.43%

9,282

Mike Witynski, President and CEO

HelloFresh (North America)

$ 18,431

$ 22,050

-16.41%

N/A

Uwe Voss, CEO

RaceTrac

$ 18,100

$ 17,200

5.23%

790

Natalie Morhous, Chairman and CEO

Per Bank, President and CEO

Grupo Comercial Chedraui

$ 17,300

$ 16,400

5.49%

1,002

José Antonio Chedraui Eguía, CEO

Casey's

$ 17,000

$ 15,941

6.64%

2,904

Darren Rebelez, President and CEO Eric La Flèche, President and CEO

METRO Inc. (Canada)

$ 15,750

$ 15,190

3.69%

1,644

Wegmans Food Markets Inc.

$ 14,300

$ 13,200

8.33%

114

Colleen Wegman, President and CEO

Hy-Vee Food Stores Inc.

$ 14,200

$ 13,400

5.97%

305

Jeremy Gosch, Chairman and CEO

Family Dollar

$ 13,000

$ 12,680

2.52%

7,150

Duncan MacNaughton, Chairman and CEO

Sheetz Inc.

$ 12,400

$ 13,500

-8.15%

825

Travis Sheetz, President/CEO

40 41 42

Associated Wholesale Grocers

$ 12,200

$ 12,094

0.88%

QuikTrip Corp.

$ 11,500

$ 11,000

4.55%

1,118

WinCo Foods Inc.

$ 10,302

$ 10,100

2.00%

145

Grant Haag, CEO

Northeast Grocery Inc.

$ 9,221

$ 8,900

3.61%

300

John Persons, CEO

Soriana

$ 8,900

$ 8,981

-0.90%

812

Ricardo Martin Bringas, CEO

Sprouts Farmers Market

$ 8,806

$ 7,719

14.08%

447

Army & Air Force Exchange Service

$ 8,700

$ 8,500

2.35%

5,500

Dan Funk, President and CEO Chet Cadieux, Chairman and CEO

Jack Sinclair, CEO Tom Shull, Director/CEO

Giant Eagle Inc.

$ 8,600

$ 11,900

-27.73%

218

Bill Artman, CEO and President

Pattison Food Group (Excluding Save Mart Cos.)

$ 8,550

$ 8,400

1.79%

300

Jamie Nelson, President

Alimentation Couche-Tard (Canada)

$ 8,007

$ 8,398

-4.66%

2,102

Brian Hannasch, President and CEO

Demoulas Super Markets Inc. (Market Basket)

$ 7,700

$ 7,300

5.48%

24 progressivegrocer.com

Donald T. Mulligan, Interim CEO

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Rank

Company

Fiscal YearEnd Revenue (In Millions of Dollars U.S.)

ARKO Corp.

$ 7,643

$ 8,732

The Raley's Cos.

$ 6,000

$ 5,800

3.45%

235

Ingles Markets Inc.

$ 5,334

$ 5,640

-5.43%

194

James Lanning, President and CEO

The Save Mart Cos.

$ 5,250

$ 5,100

2.94%

201

Jim Perkins, President and CEO

Prior Year

Percent Change

Store Count

-12.47%

1,118

Arie Kotler, Chairman and CEO Keith Knopf, President and CEO

Top Executives

Save A Lot

$ 5,000

$ 5,100

-1.96%

700

Bill Mayo, CEO

Weis Markets

$ 4,960

$ 4,796

3.42%

203

Jonathan Weis, Chairman, President and CEO

Stater Bros. Markets

$ 4,930

$ 4,800

2.71%

168

Greg McNiff, CEO

Defense Commissary Agency (DeCA)

$ 4,831

$ 4,755

1.60%

234

John E. Hall, CEO

Dollarama

$ 4,750

$ 4,340

9.45%

1,616

Brookshire Grocery Co.

$ 4,740

$ 4,600

3.04%

220

Neil Rossy, President and CEO Jerry LeClair, CEO

Grocery Outlet Inc.

$ 4,689

$ 4,372

7.25%

570

Jason Potter, CEO

Schnuck Markets Inc.

$ 4,335

$ 4,200

3.21%

114

Todd Schnuck, Chairman and CEO

K-VA-T Food Stores Inc. (Food City)

$ 4,300

$ 3,800

13.16%

164

Steven C. Smith, President and CEO

Key Food Stores Cooperative

$ 3,822

$ 3,700

3.30%

461

Dean Janeway, CEO

Alex Lee Inc. (Lowes Foods)

$ 3,800

$ 3,900

-2.56%

140

Brian George, President and CEO

Houchens Food Group

$ 3,750

$ 3,650

2.74%

400

Greg Rush, President

Brookshire Brothers

$ 3,696

$ 3,600

2.67%

122

John Alston, President and CEO

EG America

$ 3,500

$3,400

2.94%

1,470

Russ Colaco, CEO, EG Group

Associated Food Stores

$ 3,180

$ 3,100

2.58%

David Rice, President and CEO

Heritage Grocers Group

$ 3,093

$ 3,050

1.41%

115

David Hinojosa, CEO

Big Y Foods Inc.

$ 3,040

$ 2,900

4.83%

Michael D'Amour, President and CEO

Woodman's Food Market

$ 2,900

$ 2,600

11.54%

Clint Woodman, President

Navy Exchange Service Command

$ 2,626

$ 2,500

5.04%

300

Robert J. Bianchi, CEO

Giant Tiger (Canada)

$ 2,471

$ 2,400

2.96%

263

Gino DiGioacchino, CEO Reynolds Cramer, President and CEO

Fareway Stores Inc.

$ 2,410

$ 2,340

2.99%

143

Village Super Market

$ 2,321

$ 2,237

3.76%

John J. Sumas, CEO

Rouse Enterprises LLC

$ 2,218

$ 2,150

3.16%

Donny Rouse, CEO

Gopuff

$ 2,200

$ 1,900

15.79%

N/A

Yakir Gola, Rafael Ilishayev, Co-Founders/Co-CEOs

The Fresh Market

$ 2,160

$ 1,900

13.68%

172

Brian Johnson, CEO

H Mart

$ 2,099

$ 2,000

4.95%

Il Yeon Kwon, Founder and CEO

81 82 83

Marc Glassman Inc. (Marc's Stores)

$ 2,068

$ 1,915

7.99%

Marc Glassman, Chairman

Coborn's Inc.

$ 1,967

$ 1,889

4.13%

135

Chris Coborn, President and CEO

Pay and Save Inc. (Lowe's Market)

$ 1,927

$ 1,880

2.50%

153

Roger Lowe Jr., CEO

99 Ranch Market

$ 1,778

$ 1,742

2.07%

Alice Chen, CEO

Buc-ee's

$ 1,620

$ 1,410

14.89%

Arch Aplin III, President and CEO

Northgate Gonzalez Market

$ 1,598

$ 1,560

2.44%

Miguel Gonzalez Reynoso, Co-Founder and Chairman

Lidl U.S.

$ 1,551

$ 1,475

5.15%

197

Marco Giudici, Interim CEO

Variety Wholesalers (Big Lots)

$ 1,500

$ 1,200

25.00%

600

Lisa Seigies, President and CEO

Vallarta Supermarkets

$ 1,500

$ 1,400

7.14%

Enrique Gonzalez Jr., CEO

Superior Grocers

$ 1,357

$ 1,319

2.88%

Richard Wardwell, CEO

Natural Grocers by Vitamin Cottage

$ 1,336

$ 1,240

7.74%

169

Kemper Isely, Co-President and Chairman

La Michoacana Meat Market

$ 1,316

$ 1,284

2.49%

170

Israel Rocha Jr., CEO Todd Schnuck, Chairman and CEO

Festival Foods

$ 1,220

$ 1,180

3.39%

Fresh Thyme Market

$ 1,144

$ 1,100

4.00%

Liz Zolcak, CEO

Sedano's Supermarkets

$ 1,142

$ 1,100

3.82%

Agustin Herran, President and CEO

Redner's Markets

$ 1,006

$ 980

2.65%

Ryan Redner, CEO and President

Thrive Market

$ 900

$ 700

28.57%

N/A

Nick Green, CEO

Patel Brothers

$ 899

$ 878

2.39%

Hetanshu Patel, CEO

Seafood City

$ 800

$ 775

3.23%

Carlos Go, CEO

100

Food Bazaar Supermarket

$ 638

$ 620

2.90%

Spencer An, CEO

$2,973,158

$2,848,037

4.39%

TOTAL

26 progressivegrocer.com

Source: Company reports, Progressive Grocer research, industry and analyst estimates

PET SPECIALTY

SUPPLIER PERSPECTIVES

Dog Chow’s Commitment to Dogs and Veterans By Joe Toscano, Vice President, Trade & Industry Development at Purina Since its founding in 1926, Dog Chow® has played a pivotal role in transforming the way Americans view dogs – not just as working animals, but as members of the family. By pioneering nutrition research and inventing modern kibble, Dog Chow made it practical and affordable for American households to welcome dogs as cherished companions, shaping the deep human-canine bond we treasure today. From the “chow lines” that supported American troops after World War I to the pets we feed today, it is a 100-year legacy of care, confidence and commitment that spans generations – and we’re proud to continue that mission. A key part of that legacy is our Service Dog Salute™ program, launched in 2018 to support U.S. Veterans living with Post-Traumatic Stress Disorder (PTSD). PTSD service dogs are more than companions. They are lifesaving partners trained to reduce anxiety, stress and suicidal ideation while helping Veterans regain independence and confidence. Research shows these dogs can lower cortisol levels, improve sleep, strengthen family relationships and restore a sense of daily purpose. Yet the need far outpaces the availability of these highly trained dogs, and training them comes at a significant cost. That’s why Dog Chow is committed to action. To date, our Service Dog Salute program has donated over $1.8 million to train and care for PTSD service dogs, advocate for supportive legislation, fund research and raise awareness about the critical role these dogs play in Veterans’ lives. We partner with six incredible nonprofit organizations across the country to ensure that qualified Veterans receive these life-changing companions at no cost. Every donation, volunteer hour and act of support helps more dogs find their Veteran partners, and more Veterans find hope.

Dog Chow’s commitment to Veterans reflects our broader belief that dogs change lives. Over the last century, we’ve been proud to support the men and women who serve our country and the dogs who stand by them. From supplying military chow lines and supporting explorers’ sled dogs to pioneering the Service Dog Salute program, our mission has always been simple: provide the nourishment, care and respect that dogs and the people who love them deserve.

program is proof that dogs can do even more. Dogs never waver in their devotion and neither does Dog Chow. A century of trust, care and partnership isn’t just history. It’s proof that, when we work together, we can change lives and families, one dog and one Veteran at a time. Learn more about the Service Dog Salute program and how to get involved at DogChow.com/Vets.

As Dog Chow celebrates its 100th anniversary, we invite dog lovers everywhere to join us in honoring this legacy. Whether it’s learning more about PTSD service dogs, donating to one of our partner organizations or volunteering time to support Veterans in need, there are many ways to make a meaningful difference. Dogs have lived alongside humans for 15,000 years, but it’s the last century that transformed them from animals into family members. And the Service Dog Salute Purina trademarks are owned by Société des Produits Nestlé S.A.

COVER STORY

Retail Profile

Sam’s Club Tackles the Future of E-Commerce SVP GREG PULSIFER E XPL AINS WHY THE CLUB RE TAILER NO LONGER VIE WS ONLINE SHOPPING AS A SEPAR ATE CHANNEL.

S By Emily Crowe

For Pulsifer, those three criteria are a fi lter for how the retailer prioritizes what to solve for and how it makes larger decisions about what e-commerce moves are worth pursuing. “If it doesn’t meaningfully improve one of those, it’s probably not something we should prioritize,” he says. This is also where Sam’s Club’s treasure trove of member data comes in handy. “The data piece is really the lifeblood of a lot of the decision-making,” Pulsifer explains. “Because we’re a membership model, we have that continuous feedback loop, so we can see what members are doing. If there are any issues with their overall experience, there are opportunities to make the experience better.”

am’s Club has been on an e-commerce and omnichannel growth journey over the past several years, and Greg Pulsifer, SVP, e-commerce, will be the fi rst to tell you that it’s an ongoing one. By many accounts, it’s also one that’s paying off. In the most recent quarter ending Eliminating Channels for a Jan. 31, the Bentonville, Ark.-based club Seamless Member Experience Through all of this, one of Sam’s retailer’s e-commerce sales increased 23% Club’s main goals is for members not year over year, with continued strength in to notice the channel they’re shopping, club-fulfi lled pickup and delivery. As its e-commerce capabilities grow and evolve, so, too, does the way “For us, it’s really about eliminating the that Sam’s Club considers its shopping options, from in-store trips to curbside pickup to sameidea of channels altogether. Members day delivery. “For us, it’s really about eliminating don’t shop channels, they shop needs.” the idea of channels altogether,” Pulsifer shares. “Members don’t shop channels, they shop needs.” —Greg Pulsifer, SVP, E-Commerce, Sam’s Club Indeed, to members and associates alike, it’s all just Sam’s Club. “At Sam’s Club, we don’t think about e-commerce as a separate channel,” explains Pulsifer. “We really think about it as just one seamless member experience. It quite literally is part of everything we do, and there’s been a journey where we’ve seen these things evolve.”

Value, Speed and Convenience

Whether Sam’s Club members are looking for that quick baby formula delivery or shipping on a large appliance, it’s becoming clear that they’re increasingly demanding consistent service across these options that is defi ned by value, speed and convenience. Pulsifer says Sam’s Club’s ultimate goal is to make shopping channel agnostic.

28 progressivegrocer.com

According to Pulsifer, Sam’s Club’s physical stores and digital channels work hand in hand to make the overall shopping experience stronger.

Flexible curbside pickup is one of Sam’s Club’s many omnichannel member shopping options.

but rather how easy it is to shop with the retailer He continues: “We love the club. The club enables – and this goal is being met in meaningful ways. speed and immediacy. Then the digital platform adds this convenience and this personalization. Individually, they’re Data shows that half of Sam’s Club’s members really strong, but together, that’s where the experience gets are starting their in-club shopping journey on stronger than either could on its own.” the company’s app, which reveals that the digital experience is quite literally driving foot traffic into the club. That’s a win for the retailer, even if Rapid Innovation and New Capabilities With innovation integrated into its operations, Sam’s Club purchases aren’t necessarily occurring. is constantly looking at new ways to add value both for its “We know that members are using the app bottom line and for its members. One example is Scan & before they go into the club, but they’re not purGo, which has undergone a growth journey of its own since chasing,” Pulsifer shares. “In old-world metrics, its debut as a stand-alone app in 2016. Today, Scan & Go you would look at that and say, ‘They had a visit has become a beloved member perk with an impressive Net on the site or the app, and they didn’t make a Promoter Score of 91. purchase. That’s a negative interaction because you had traffic and no conversion.’ But that’s not “I think what’s great about Scan & Go is that it’s true inhow we look at it.” novation,” Pulsifer says. “It is quite literally the connective Additionally, nearly two-thirds of Sam’s Club’s tissue between the digital and the physical world. Members e-commerce business is being fulfi lled out of a are using Scan & Go on a digital device, in a physical club today, which Pulsifer acknowledges is “the environment, to complete a physical transaction. It’s the textbook defi nition of an omnichannel business.” quintessential essence of omnichannel.” About 70% of the retailer’s members are also joining online. “We’re building something where “We love the club. The club enables speed and the physical club and the digital expeimmediacy. Then the digital platform adds rience reinforce each other,” Pulsifer explains. “For a long time in my this convenience and this personalization. career, there was always this channel Individually, they’re really strong, but together, confl ict and this tension. I think one of the great parts about Sam’s Club, that’s where the experience gets stronger than and the way that we’ve been able to either could on its own.” approach this, is that we know the roles that each of these play.” —Greg Pulsifer, SVP, E-Commerce, Sam’s Club PROGRESSIVE GROCER May 2026

COVER STORY

Retail Profile

Sam’s Club offers several options for its members to get dinner quicky, including curbside pickup of a rotisserie chicken, and speedy pizza delivery.

and while the company hit hurdles along the way, it was quick to correct issues. “One of our superpowers is fi xing things on the fly,” Pulsifer says. Sam’s Club now delivers more than 22,000 pizzas per week, and the retailer uses AI to help predict busy pizza delivery days so it can stay ahead of the customer demand curve. “This is also driving incremental engagement and additional shopping trips,” Pulsifer says. “So we are seeing members who are shopping more frequently with us because of the pizza.”

Last month, Sam’s Club debuted Express delivery, which promises orders in one hour or less, and which Pulsifer considers “the ultimate convenience.” The service carries a $10 delivery fee for Plus members and a Leading a “Forever-Optimized Business” At the end of the day, Pulsifer waxes a bit poetic about retail e-com$22 fee for Club members, but there merce and the possibilities it can unlock. “E-commerce is a growth are no additional markups or service capability,” he says, “a world of endless possibilities.” fees for users. According to Pulsifer, the retailer has seen immediate chang“It’s defi nitely a busy time, but it’s also an exciting one,” he adds. es in member behavior following the “E-commerce, if you think about it, is a forever-optimized business. rollout, including an increase in order There’s always something to chase. There’s always something to work on.” frequency. As a leader, Pulsifer says he makes sure that his team takes time to Another noteworthy e-commerce celebrate the wins, but that then they turn the page and keep moving innovation is Sam’s Club’s foray into forward. He ensures that his team has deep agency and ownership in pizza delivery, which began one year their work, but also that it remains fi rmly based in Sam’s Club’s deep ago this month. “I think what’s interwell of data, as well as the company’s plans for the future. esting here is that the pizza story acBeing optimistic is also a core tenet of Pulsifer’s work. tually started with rotisserie chicken,” “There is an incredible power in optimism, and it’s part of my DNA Pulsifer muses. “Rotisserie chicken and my leadership,” he concludes. “You think about all that’s been was one of the top items that we had done, and that’s been done by the dreamers. We’re certainly groundin curbside pickup, and we wanted to ed in reality, but we approach every aspect of this business with an figure out a way to intense sense of optimism of make it available for “E-commerce, if you think about it, is what could be.” delivery, which was a fun problem to solve.” a forever-optimized business. There’s Editor’s Note: This interview was Sam’s Club was always something to chase. There’s performed prior to Sam’s Club able to go from conalways something to work on.” and Walmart’s quarterly quiet cept to pizza delivery period, which began on May 1. in a mere six weeks, —Greg Pulsifer, SVP, E-Commerce, Sam’s Club 30 progressivegrocer.com

CATEGORY REVIEW

Deli and Bakery Coborn’s in-store-bakeries feature clearly segmented displays.

Key Takeaways  Retailers that tailor their product mix and merchandising strategy to specific customer groups in deli and bakery are set up for success.  Premiumization, convenience, smaller formats, unique local assortments, and layouts that make it easy for customers to find what they want can boost sales in these departments.  Digital and in-store marketing can work together to bring these categories to life.

Deli and Bakery Best Practices RE TAILERS WEIGH IN ON WHAT WORKS IN THESE CRUCIAL STORE DEPARTMENTS.

A By Bridget Goldschmidt

mid an uncertain economy, the deli and bakery departments offer important selling opportunities for food retailers. 210 Analytics and Circana recently reported that prepared foods and meals delivered dollar and unit gains, and that while deli meat volume was down year over year, grab-and-go packs were an exception, showing considerable growth. “This has been an ongoing trend, as consumers like the convenience and retailers are increasingly closing their full-service counters or reducing the hours of operation,” noted Anne-Marie Roerink, president of San Antonio, Texas-based 210 Analytics LLC, in her March 2026 report on the meat and deli categories. In the perimeter bakery, dollar sales were better than in the commercial bakery aisle, but the gains came from inflation, according to Roerink, who also pointed out in March that “performances at the category level varied widely. Cakes performed well, as did brownies and bars. Fresh tortillas were another area of growth, albeit small.” Meanwhile, morning bakery; bread, buns and rolls; and desserts and sweet goods were either down or flat. Still, a superior fresh offering is an undeniable lure for customers, and smart retailers are leaning into that by giving shoppers exactly what they want.

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“Retailers who tailor their product mix and merchandising strategy to specific customer groups are set up for success,” observes Sharon Olson, executive director at Culinary Visions, a Chicago-based culinary marketing practice. “For example, best basics and value prices have as much allure as hard-to-find luxury ingredients and pricey prepared foods when they reach the right shoppers. Deep discounts can work to drive volume but can also negatively impact long-term value perception. The important thing is that retailers stay true to their brand promise and customers know what to expect and are not disappointed.”

Deli Differentiators

The in-store deli is a prime spot for differentiation, as Busch’s Fresh Food Market knows well. “Our deli departments are proud to feature knowledgeable cheese mongers offering over 100 freshly hand-cut cheeses,” says Joanne Zlotorzynski, director Busch’s Fresh Food Market’s delis enable customers to build complete meals.

CATEGORY REVIEW

Deli and Bakery of food service at the Ann Arbor, Mich.-based independent, which operates 16 stores across southeast Michigan. “Our expansive cheese counters showcase a wide variety of both imported and locally sourced selections, complete with special features and wine-pairing suggestions to elevate any occasion. We’ve also introduced Monger Bites — perfectly portioned pieces designed for guests to explore and discover new cheeses with ease.” (For more about cheese, see the story on page 38.) Alongside the gourmet experience, Busch’s shoppers can get something fast. “For guests on the go, our deli grab-and-go and full-service Chef’s Cases Coborn’s fresh, high-quality meal solutions are driving growth across key deli segments, including sandwiches, snacking, salads and prepared meals. offer convenient meal solutions, including both hot and ready-to-heat options,” Zlotorzynski adds. “These chef-inspired recipes are made with “In deli, the biggest opportunities are there’s an opportunity quality ingredients and crafted for everyday to deliver products with around meal solutions, high-protein convenience without compromising flavor.” meaningful benefits — snacking, and a balance of specialty Busch’s delis also offer “a wide assortlike protein and cleaner ment of sides and entrées, making it easy ingredients — without and comfort-driven foods.” to build a complete meal,” she says. sacrificing flavor.” —Josh Croson, Coborn’s “In deli, the biggest opportunities are At Santa Rosa, around meal solutions, high-protein snacking, and Calif.-based Oliver’s Market, the prepared food program is a a balance of specialty and comfort-driven foods,” particular standout. “For the deli channel, we continue to see great observes Josh Croson, director of deli at St. Cloud, success with our Oliver’s Kitchen (HMR) dinner program,” says Minn.-based Coborn’s, which has more than 70 James Schwedhelm, deli coordinator at the grocer, which operates grocery stores in the Midwest. “We’re making it easier four stores in Sonoma County. “Restaurant pricing is high, and we for shoppers to find protein-forward snacks, simple feel that we offer a restaurant-quality product with a grocery store meals and globally inspired options by price point. We take great merchandising deli as a destination for both pride in our clean labels. We convenience and value.” think it’s important that our This includes expanding assortments customers can read and spell of protein-focused snackers, single-serve every ingredient we include in meals and family-sized offerings, all our product.” merchandised together to help customers The popularity of this quickly build complete meals rather than program has led the grocer having to shop for individual components. to add a line of low-carb Further, deli departments prioritizing meals, which has also seen clarity and solution-based shopping are success, promoted through the most effective in driving both traffic and clear signage and labeling as sales, according to Croson. well as placement in Oliver’s “Layouts that lead with meal solutions weekly ads. are proving most effective, because they As for layout, Schwedhelm immediately communicate convenience, explains: “Our stores operate value and freshness,” he says. “Grouping with an open floor plan with complementary items together helps posilots of signage. We focus on tion deli as a complete meal destination and our branded items with disincreases basket size.” plays in key locations within the Coborn’s has seen the results of this department. Having all aspects approach for itself. “Our focus on fresh, of the deli visible – deli counter, high-quality meal solutions is driving grab-and-go wall, hot bar, growth across key deli segments, including salad bar, taquería – is also sandwiches, snacking, salads and prepared essential for success.” meals,” Croson asserts. Going forward, he sees even more ways to engage with deli shoppers. “As cusOliver’s Market is proud of its tomers become more mindful of wellness, clean-label deli offerings.

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CATEGORY REVIEW

Deli and Bakery This strategy has led to “continued driven through rotating limit“Our scratch artisan bread growth in each category, in particular ed-time offerings and continuprogram, specifically sourdough, our house-made items,” he notes. ous assortment refinement. continues to dominate the bread Asked to predict what’s next for deli “We’re constantly evaluat Oliver’s, Schwedhelm replies: “Our category. Guests are looking for the ating what’s next — bringing future looks bright. We’re very fortunate in new items quickly and product integrity and authenticity to have a great team of chefs who conadjusting our assortment to that comes with the human touch.” reflect changing customer stantly bring new and exciting recipes to the table. With a commissary expansion preferences,” Sabo says, —Fauna Hartley, Busch’s Fresh Food Market coming to our channel this year, we will noting that, in common with have the ability to push the envelope even further.” Busch’s, this strategy includes intentionally creating space for local vendors within the bakery assortment. This prioritization has led to “strong engagement and a clear point of differentiation with our Better Bakery Business At Busch’s, bakery is defined by three key trends: guests,” he adds. artisan-crafted/local products, premiumization, and In fact, Sabo notes “growing interest in locally sourced and comfort and community differentiated products across [deli and bakery] as customers look “Our scratch artisan bread program, specifically for items that feel more unique and connected to their communisourdough, continues to dominate the bread categoties.” According to Coborn’s, in stores where local assortments ry,” affirms Fauna Hartley, Busch’s bakery category have been expanded, the food retailer is seeing higher engagement manager. “Guests are looking for the product integrity and stronger overall category performance, reinforcing the value of and authenticity that comes with the human touch. localized merchandising strategies. Supporting our local partners is important to us and to At Oliver’s, clean labels are a top consideration. Bakery our guests. ‘Growing Home’ is our motto. As a buyer, I Department Coordinator Marghi Sulas points out that “the houseseek to make connections with local producers and be made Oliver’s Own items have been very successful. The simple the incubator for their vision.” and clean ingredients with competitive pricing is a solid combinaRegarding upscale offerings, Hartley advises “focustion for our customers.” ing on single-serve, premium treats with clean, quality Simplicity is likewise key in bakery department layouts, accordingredients and inspiring presentation. Guests are ing to Sabo. “We focus on clearly segmented displays and strong finding value in quality and experience, choosing ‘the seasonal callouts to make it easy for customers to find what they’re best’ when they indulge.” She adds that many happy looking for while also encouraging impulse purchases,” he says. customers share their special finds on social media. Customer demand for fresh and differentiated bakery offerings Beyond those two considerations, however, she emcontinues to drive momentum at Coborn’s, which is “seeing growth phasizes: “Food is a uniter. We come together around in in-store baked goods and specialty items,” Sabo observes. the dinner table; we break bread. Connecting with the “While larger cakes are declining in dollar sales, unit volume recommunities we serve is important to us at Busch’s. mains steady as customers shift toward smaller formats.” We have multiple community sales events throughout He believes that the focus in bakery will remain on balancing the year that afford us the opportunity to engage with indulgence with evolving customer preferences. our guests by hand-selling product and making a genu“Customers are looking for options that allow them to enjoy ine, face-to-face connection.” indulgent items while still aligning with their preferences, whether At Coborn’s, bakery-purchasing behaviors are that’s portion size or ingredient considerations,” Sabo says. shifting toward smaller formats and more personalized In promoting its deli and bakery departments, Coborn’s has options. taken an omnichannel “Customers are approach, noting, “Digital moving away from larger, and in-store marketing work traditional cakes and together to bring these toward smaller, flavored categories to life — from cakes and single-serve showcasing meal solutions desserts,” observes Bob and snack ideas to clearly Sabo, the grocer’s director communicating product of bakery. “At the same benefits like protein content, time, doughnuts and limitingredient simplicity and ed-time offerings continue overall value.” to perform well as cusOliver’s Market touts its tomers look for accessible Oliver’s Own baked goods, indulgences.” which offer customers Innovation in Coborn’s simple ingredients and bakery departments is competitive pricing.

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CATEGORY REVIEW

Cheese

Something Special SPECIALT Y CHEESE IN THE DELI CAN DRIVE TR AFFIC AND SALES FOR RE TAILERS.

D By Bridget Goldschmidt

espite shifting consumer preferences, cheese remains a bright spot in the deli that savvy grocers can capitalize on. “Cheese continued to perform well, driven by ongoing strength in specialty cheeses during everyday and holiday weeks,” wrote Anne-Marie Roerink, president of San Antonio-based 210 Analytics LLC, in her March 2026 report on the meat and deli categories. “Specialty cheese underscores that it’s not all about price, and premium goods can continue to do well, especially among higher-income households.” To illustrate her findings, Roerink cited Circana data showing year-to-date deli cheese sales of $9.1 billion, a 4.0% increase from the year-ago period and a 3.3% uptick in pounds, while the specialty cheese segment accounted for $6.5 billion in sales, a 5.9% rise from last year and a 5.3% increase in pounds. Consumer demand for elevated cheese products has been noted at Ann Arbor, Mich.-based independent grocer Busch’s Fresh Food Market, where Center Store Category Manager Joelle Forbes observes that “there is rising interest in bold flavors and globally inspired varieties, reflecting a desire, especially among younger shoppers, to explore new tastes and culinary experiences.” Kurt Burmeister, SVP of national sales and importing at Warren, Mich.-based Lipari Foods and its KLT Global division, concurs, pointing to “growth in varieties such as artisanal, oneof-a-kind, European [and] Hispanic cheeses; gouda; and feta, as well as more inclusions to add flavor such as hot peppers [and] black garlic. … Consumers are more adventurous and more interested in flavor discovery than ever before.” “Consumers are increasingly shifting from everyday consumption to ‘less but better’ choices, prioritizing authenticity, craftsmanship and

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Specialty cheese has an important role to play in the supermarket deli.

products with a clear origin,” notes Denis Kaser, head of international marketing at Gruyères, Switzerlandbased Le Gruyère AOP, adding that his organization’s cheeses “stand apart because they cannot be replicated outside their region, and follow strict production rules rooted in centuries of know-how.” Appellation d’origine protégée (AOP) is a European Union certification guaranteeing that a food product or wine is produced, processed and prepared in a particular geographical area employing recognized traditional methods. He adds that Le Gruyère AOP boasts “fully traceable production — from Swiss Alpine pastures to cellar aging — delivering a consistent yet naturally variable taste linked to seasonality and terroir.” Speaking of seasonality, the time of year can influence the kinds of flavors that consumers crave. “Like other sectors of the food industry, cheese is embracing new flavor profiles as brands respond to trends that resonate with consumers’ tastes,” explains Patrick Considine, national director of sales at Malone, Wis.-based goat cheese maker LaClare Creamery. “Heading into spring and summer, that means a shift toward fresh, seasonal flavors that complement warm-weather dishes and desserts. We’re seeing this emphasis take shape in the specialty cheese aisle with clean, bright, sunshine-inspired flavors — like lemon or berry — as well as earthy flavors that taste fresh from the garden, like rosemary, basil and heirloom vegetables. Some more experimental flavors taking over the cheese sector include botanical and umami-rich flavor profiles like lavender, zucchini blossoms, truffle or ube.”

Busch’s Fresh Food Market offers a cheese case packed with variety.

CATEGORY REVIEW

Cheese

Building a Destination

According to Burmeister, “Our current cheese growth strategy is built around high-velocity cheeses, imported staples, seasonal features, and value-added items that support stronger basket building and premium trade-up.” He continues: “From a merchandising standpoint, we are emphasizing programs that make cheese easier to shop and more productive for retailers. This includes planogram support, in-store signage, display solutions, and promotional programs that connect cheese to meal solutions and entertaining occasions. One of the most effective strategies is cross-merchandising cheese with complementary categories” – crackers, charcuterie, bakery and more – “to drive a more complete purchase. We are also able to tell the stories behind many of our cheesemakers, which retailers can share with consumers.” On the digital side, “the opportunity is to make cheese more approachable by tying it to recipes, pairings, entertaining ideas and usage occasions rather than presenting it as a static commodity item,” Burmeister notes. “The goal is to help consumers understand not just what the product is, but how to use it.” He also advises that “the best-performing cheese sections are easy to navigate, visually appealing and built around shopper decision-making rather than simply maximizing item density,” suggesting that retailers “organize the set by usage occasion or cheese family, allowing shoppers to quickly find what they need,” and “incorporate hand-cut and wrapped or service-case offerings, where appropriate, to elevate the department image.” Indeed, how the cheese is presented is a key consideration. “Le Gruyère AOP is available in both cut-and-wrap and pre-packaged formats, positioning it as a versatile premium staple for everyday use and special occasions,” says Kaser, adding that “in-store tastings are designed as educational moments, helping consumers understand the difference between industrial and AOP production — from raw milk to copper vats and traditional aging. While packaging clarity can vary, the Le Gruyère AOP logo remains the key quality cue, signaling authenticity and origin.” Meanwhile, Le Gruyère AOP’s digital strategy leans into “storytelling rather than promotion —highlighting the people behind the cheese, the Swiss Alpine environment and real usage occasions. Recipe content integrates Le Gruyère AOP naturally into cooking and entertaining, bridging inspiration with practical application.” As for the best way to merchandise specialty cheese, Kaser replies: “The most effective layouts position cheese as a destination category, where expertise and storytelling drive engagement. Dedicated specialty counters or ‘cheese shop’ environments create trust and encourage exploration, especially when supported by knowledgeable staff and visible product authenticity such as whole wheels and on-site cutting.” “The LaClare Creamery team typically suggests brand Warmer weather inspires consumers to reach for bright, sunshiny flavors like berry, according to LaClare Creamery.

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Le Gruyère AOP’s logo signals authenticity and origin to specialty cheese consumers.

blocking in display cases,” Considine says. “This helps consumers find a specific item or a new release, because they can first identify where their favorite brand is and then narrow down the offerings from there. By seeing a brand’s full offerings together, consumers are also able to identify a new limited-edition flavor more easily because it’s already situated next to their weekly pick.”

The Future of Specialty Cheese

What’s on the horizon for specialty cheese? At Lipari Foods/KLT Global, Burmeister expects “continued growth in authentic regional cheeses [and] globally inspired varieties … and formulations that align with consumer interest in natural ingredients, organics, freshness and wellness,” although “at the same time, affordability will remain important, so successful innovation will need to balance premium cues with practical everyday value.” “The future of cheese will be shaped not only by innovation, but by preserving models that are inherently sustainable and transparent,” Kaser asserts. “The focus will remain on authenticity — clear provenance, minimal ingredients and time-honored methods — rather than reformulation.” Meanwhile, from a marketing perspective, “the future lies in connecting digital discovery with physical experience, while continuing to educate consumers on provenance, usage and value,” he notes. “The specialty cheese industry continues to push the limits of what consumers expect from cheese,” Considine observes, adding that “the possibilities are endless when it comes to offering unique flavors inspired by seasons, holidays and major flavor trends.” He adds: “As specialty cheese continues to evolve, the future will be defined not only by innovative flavor development, but also by how those flavors are brought to life through marketing and merchandising. Consumers are increasingly drawn to cheeses that feel expressive, playful and discoverable — products that stand out in the case through bold flavor combinations, eye-catching packaging, and storytelling that sparks curiosity and inspiration.”

ONLY AOP TURNS GRUYÈRE INTO GOLD. AOP isn‘t just a seal, it‘s a guarantee. As a protected designation of origin, it means the Gruyère you‘re buying is the original: Made only in Switzerland, from cows grazing in local meadows. Copied around the world, but never equaled. Every wheel must meet 16 pages of strict requirements, upheld by dedicated farmers, master cheesemakers, and affineurs who‘ve been perfecting this craft since 1115. That‘s the noble character — and the gold standard — of Le Gruyère AOP.

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SOLUTIONS

Seafood

Unlocking the Potential of Alaska Seafood ASMI ILLUMINATES HOW RE TAILERS CAN LE VER AGE THE LE ARNINGS OF A RECENT CIRCANA STUDY.

Wild Alaska seafood helps shoppers add protein in the most delicious way possible.

By Mike Duff

rocers can capitalize on the opportunity that Alaska seafood offers and build on the already positive reputation it has earned with consumers by appealing to their priorities. Megan Rider, domestic marketing director at the Juneau-based Alaska Seafood Marketing Institute (ASMI), provides an essential means to do just that in the form of a Circana study on what generates and what blocks seafood purchasing. Below, Rider shares with Progressive Grocer what ASMI learned from the Circana study, as well as how grocers can use that data. Progressive Grocer: What is the opportunity with Alaska seafood today, regarding today’s grocery store consumers? Megan Rider: The opportunity is strong because consumers are already highly satisfied with seafood, intend to keep buying it and increasingly connect seafood with health. ASMI hired Circana to conduct consumer research and found that health benefits are a primary reason shoppers choose seafood over other foods, and for those buying more seafood, health is the leading reason they increased purchases. That creates a clear opening for grocers to position wild Alaska seafood as a delicious, nutritious protein that fits the way consumers want to eat today. So, the opportunity is not just to sell seafood, but to sell a protein solution that meets shoppers’ goals around wellness, taste and meal satisfaction. PG: Who is hungry for what Alaska seafood provides, and has the potential consumer base been expanding? MR: There is broad appeal across seafood buyers, but several groups stand out. Circana shows that households with children are especially promising: They like trying new recipes, are more open to experimentation, and are more positively influenced by Alaska sourcing and the Alaska Seafood logo. Kids also appear more receptive to seafood in sushi and prepared formats, which suggests retailers can expand household penetration by merchandising Alaska seafood in multiple forms and meal solutions. The consumer base also has room to grow because buyers cross-purchase across fresh, frozen, shelf-stable, sushi and prepared seafood. A family buying frozen or prepared items today can be moved into fresh tomorrow with the right support, especially recipes, cooking confidence and value messaging.

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PG: Of course, health is a major concern, but what about wellness in general, in that consumers increasingly view their own personal conditions in the context of the community and environment? MR: That broader wellness lens is increasingly important, and Alaska seafood fits it well. Circana found that while sustainability and U.S./Alaska sourcing are not always top of mind at the point of purchase, shoppers who do focus on sourcing associate seafood from the U.S., or Alaska [specifically], with being safer, wildcaught and fresher. That gives retailers a meaningful story to tell: Alaska seafood supports personal wellness while also connecting shoppers to responsible sourcing and trusted origins. For many shoppers, wellness is no longer just about nutrition facts. It is about feeling good about the food they serve their families and where it comes from. That is why Alaska seafood messaging works best when it links nourishment, wild harvest, trusted U.S. origin, and the people and communities behind the catch. ASMI’s platform supports that by pairing nutrition education with species information, recipes, and broader healthand-wellness storytelling. PG: What are the factors that set Alaska seafood apart that grocers can effectively communicate to shoppers? MR: Retailers should lead with the attributes shoppers most readily understand: wild, high-protein, nutritious and sourced from Alaska. That is a strong set of messages for category buyers and retail dietitians because it combines quality, trust and differentiation in language shoppers can quickly absorb. Alaska seafood also stands apart nutritionally. ASMI highlights high-quality protein, omega-3s, vitamins D and B12, selenium, zinc, iodine, and iron across Alaska seafood species. For grocers, the most effective communication is simple and concrete: Wild Alaska seafood is a nutrient-dense protein that tastes great and comes from a place shoppers trust. PG: Price is a factor in seafood sales, so how should retailers convey the real value of Alaska seafood to consumers?

MR: Circana is very clear here: Price matters, and rising prices are the biggest barrier to buying more seafood. But the answer is not to race to the bottom on price. The smarter strategy is to build value perception by showing shoppers what they get: a healthy meal, strong protein nutrition, versatility and a restaurant-quality eating experience at home. Circana specifically points to bundling seafood with meal ingredients like herbs, spices, oils, butter and vegetables as a way to improve value perception. Retailers can also present Alaska seafood as value through usability. Frozen options help shoppers prepare the exact amount needed, while shelf-stable and prepared forms bring convenience. The key is to frame Alaska seafood as worth it: nutritious, satisfying, flexible across budgets and occasions, and capable of replacing higher-cost or less nutritious proteins in the weekly mix. PG: As protein becomes a larger consumer health concern, in what ways can retailers communicate how Alaska seafood can help them add protein to their diets in a nutritious way? MR: Retailers should make protein claims practical, not abstract. Circana found that high protein was a purchase driver in some seafood forms, and consumers who increased seafood purchases often did so because they wanted healthier protein options. That suggests shoppers are receptive to protein messaging when it is tied to real meal decisions. For dietitians and seafood teams, the winning message is that wild Alaska seafood helps shoppers add protein in the most delicious way possible while supporting heart health, brain health, immune function and overall healthy eating patterns. PG: Given the health benefits and high protein content, how should grocers encourage consumers to add Alaska seafood to more meal occasions for themselves and their families, including children? MR: To show how Alaska seafood fits into everyday life, retailers should merchandise it for weeknight dinners, lunch solutions, lunchboxes, snackable formats and family-share occasions. This is also where retail dietitians can add real value. Families need help seeing Alaska seafood as easy, nutritious, and kid-friendly. Quick recipes, family bundles, meal planners and kid-involved prep ideas can all help normalize seafood more often during the week. ASMI’s recipe and prep resources give retailers ready-made tools to support that effort. PG: How important are recipes and cooking instructions in generating more Alaska seafood sales?

The opportunity is not just to sell seafood, but to sell a protein solution that meets shoppers’ goals around wellness, taste and meal satisfaction. —Megan Rider, Alaska Seafood Marketing Institute

MR: They are extremely important. Circana found that recipe use is widespread, that buyers with kids prefer recipes, and that frozen buyers in particular need more confidence in how to prepare seafood. The study specifically recommends easy recipes, step-by-step videos, tutorials and meal ideas to help shoppers feel more comfortable and motivated to buy. Recipes do more than educate. They create cravings, reduce uncertainty and move seafood into the basket. ASMI [offers] a recipe finder, cooking tips, videos, species-specific prep guidance and downloadable materials retailers can use in-store and online. PG: How can grocers position Alaska seafood in their stores to maximum effect? MR: In-store is the biggest lever. Circana found that shoppers are most likely to become aware of seafood while they are in the store, and that in-store signage and store fliers are critical tools for making seafood top of mind. Alaska seafood should be highly visible with signage that communicates wild origin, protein, nutrition and meal ideas right at the point of purchase. Retailers should also think in solutions, not just SKUs. Secondary displays; cross-merchandising with vegetables, grains, sauces or seasonings; and clear prep suggestions can help convert interest into sales. PG: How can retailers use social media to build their Alaska seafood sales? MR: Social media works best when it makes Alaska seafood feel achievable and craveable. Retailers should focus social content on appealing finished dishes, short cooking videos, protein callouts and easy meal ideas. The best-performing content themes are likely to be simple recipes, family-friendly meals, grilling ideas, lunch and snack inspiration, and “healthy protein made easy” messages. Social should not stand alone, either. Circana shows shoppers often become aware of seafood in-store, in flier messaging, on retailer websites and through coupons, so social content should align with in-store promotions, circulars, digital coupons and seasonal campaigns. PG: When should grocers be promoting Alaska seafood, and should they be considering more eating occasions like grilling and cocktail and dinner parties? MR: Grocers should promote Alaska seafood yearround, but with sharper occasion-based storytelling. Circana suggests shoppers need reminders and inspiration, not just availability. That means aligning Alaska seafood to occasions where seafood can play as both everyday meal and special-occasion centerpiece. Alaska seafood fits grilling, appetizers, sushi nights, lunch occasions, family meals and entertaining. ASMI’s recipe and grilling resources help retailers stretch the category into more moments. PROGRESSIVE GROCER May 2026

SPECIAL REPORT

Checkout of the Future

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The checkout experience is transforming from a task to a natural conclusion to shopping.

Making Complexity Simple A WINNING CHECKOUT E XPERIENCE BAL ANCES AI, HARDWARE AND THE HUMAN TOUCH TO REMOVE FRICTION FOR BOTH SHOPPERS AND RE TAILERS.

T By Jim Dudlicek

he checkout of the future is less about a single endpoint and more about a fluid experience that begins in the aisle and extends seamlessly through payment. So says Nino Hoerttrich, senior director of marketing retail for checkout solution provider Diebold Nixdorf, based in Germany with U.S. headquarters in North Canton, Ohio. He envisions shoppers moving naturally from browsing to checkout, while AI and computer vision work invisibly to recognize items, support accuracy and maintain flow. Much of this future is already here. “AI-enabled capabilities such as fresh produce recognition (now reaching 93% accuracy), automated age estimation (cutting age-check time by over 60%) and intelligent item verification are actively reducing friction and shrink at self-checkout today,” Hoerttrich says. “For shoppers, this translates into faster, more intuitive transactions with fewer interruptions. For retailers, it means fewer manual overrides, improved front end efficiency and greater confidence scaling self-checkout — especially as checkout availability increases without requiring additional staffing.” Retailers face growing pressure to reduce loss, operate with fewer associates and keep checkout moving smoothly, even during peak hours, “at a time

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when nearly three-quarters report ongoing labor shortages,” Hoerttrich notes. “At the same time, shoppers increasingly expect speed, accuracy and autonomy, with more than one in five store dissatisfaction issues tied directly to checkout delays.” Technology like AI helps bridge the gap between operator needs and shopper demands. “Computer vision and real-time analytics enable proactive shrink mitigation and reduce unnecessary interventions — only a small portion of self-checkout transactions now require system alerts,” Hoerttrich says. For shoppers, intelligent guidance and automated corrections quietly resolve issues such as missed scans or unrecognized items, keeping checkout fast and intuitive. “The result is a front end that delivers faster flow, fewer errors, and a smoother experience for both shoppers and store teams,” Hoerttrich asserts. “The checkout of the future is not a lane. It is a retail operating model,” says Robert Symmonds, CEO of Medicine Hat, Albertabased point-of-sale technology provider Auto-Star. “A meaningful part of that future is already here. Many retailers already have some of the tools. What the industry is still solving is not access to those tools, but the coordination behind them.”

Market Snapshot

From the first barcode scan more than a half-century ago, to the first self-checkouts about three decades ago, to the first cashier-less store in 2018, retailers have been ramping up adoption of technology to enhance the customer experience. Most retailers – 83% – continue to use technology to personalize the marketing or shopping experience, both online and in-store, according to “The State of Technology: Enhancing Success for Shoppers and the Food Industry,” a 2025 study from Arlington, Va.-based FMI – The Food Industry Association.

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Checkout of the Future Among the study’s key findings:  Use of electronic shelf labels continues to grow.  Credit/debit card usage reached a new high as the most common payment type.  Nearly all food retailers now accept mobile payments.  Almost half of responding grocers offer scan-and-go technology. Of the retailers responding to FMI’s study, 21% were using mobile checkout systems or self-scan in 2022, 48% in 2023 and 38% in 2024, with 6% planning to use them in 2025. Smart carts are gaining some traction, with 5% using them in 2022, 8% in 2023 and 14% a year later, with 8% planning to use them in 2025. “Food retailers continue to enhance the shopper experience by pursuing technology-based service differentiation strategies, including online shopping and faster or ‘frictionless’ checkout,” the study notes. “The focus is on boosting operations and future-proofing the business.” Digital engagement, omnichannel, online and digital experience are increasingly used as differentiation strategies. For example, the number of retailers reporting a focus on a speedier checkout experience has risen from 38% in 2019 to 63% in 2025. Likewise, the use of in-store technology such as robotics and AI has gone from 10% to 19% during that period. Nearly half (43%) of respondents offer scan-and-go technology, compared with just 26% in 2019, FMI reports. Mobile payments are now almost universal among retailers: All responding retailers who accept mobile payments now take Apple Pay, while others are accepting store-created wallets (39%) and QR codes (50%). Curiously, shoppers have increased their usage of regular cashier lanes and reduced their use of self-checkout, according to FMI. Nearly 60% of transactions in 2024 took place at regular cashier lanes, a jump from 52% the year before. Meanwhile, just over one-third of transactions were at self-checkout lanes, a decrease from 44% in 2023, FMI notes.

Incorporating AI

The global market for AI in food retail and e-commerce is projected to grow from $3.5 billion in 2025 to $13.4 billion in 2030, a compound annual growth rate of 30.8%, according to a report from Boston-based BCC Research. That expectation should compel retailers to find the best way to harness the technology to drive sales and shopper satisfaction. AI is shifting checkout from a reactive process to a real-time,

“By connecting aisle-level insights with the front end, checkout becomes a more cohesive and predictable experience.” —Nino Hoerttrich, Diebold Nixdorf

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Diebold Nixdorf’s Vynamic Smart Vision’s AI camera automatically scans and recognizes fresh produce items.

context-aware system, Hoerttrich observes. “Instead of relying on rigid rules or post-transaction reviews, AI enables checkout systems to understand what’s happening in the moment — distinguishing between normal behavior, unintentional mistakes and true risk,” he says. This reduces unnecessary alerts and manual interventions while maintaining strong loss prevention. “It also helps checkout move faster and feel less transactional, with fewer pauses and handoffs,” Hoerttrich explains. “The most successful AI applications today focus on measurable operational impact — improving accuracy, reducing age-verification time and supporting consistent performance across stores — rather than novelty.” The heart of Diebold Nixdorf’s vision is a checkout experience that feels effortless for shoppers and simpler to manage for store associates. At the core of its approach is AI-powered intelligence applied across self-checkout, traditional lanes and the broader store environment. “By connecting aisle-level insights with the front end, checkout becomes a more cohesive and predictable experience,” Hoerttrich says. At the lane, AI helps address the most common sources of loss and friction — unintentional user errors, shopper frustration when items don’t scan, and opportunistic behavior — through computer vision-based recognition of packaged goods and fresh produce, automated age estimation, and intelligent self-rectification that allows shoppers to resolve common issues themselves.

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Diebold Nixdorf’s Vynamic Smart Vision solution enables item-level visibility and realtime detection to identify potential shrink.

“In practice, this reduces missed scans (which account for the majority of self-checkout errors), speeds produce selection by more than 60% and lowers the need for staff intervention — delivering lower shrink, higher throughput and significant labor savings without disrupting the shopping experience customers already trust,” Hoerttrich says. For Auto-Star, the AI story is practical, Symmonds says. “It is about helping staff find answers faster, reducing manual receiving work, improving visibility and giving retailers better information without adding more complexity to the front end,” he notes. “The most useful AI in checkout is not there to impress people. It is there to save time and help stores run better.” To that end, Auto-Star’s strength is that it approaches checkout as part of a broader operating system for the store, Symmonds explains. “That means giving retailers multiple ways to serve the shopper while keeping the back end aligned,” he says. “On the store side, that includes line busting, price checking, loyalty, integrated payments and multi-store coordination. On the operational side, it includes tools that help stores manage purchasing, receiving, delivery and communications without disconnecting those functions from checkout itself.”

Diebold Nixdorf to offer retailers a cohesive end-to-end approach that combines advanced point-of-sale technology with expert professional services to support modernization and operational excellence. Diebold Nixdorf’s Vynamic software portfolio, which provides checkout solutions across various retail channels, enables integration with external systems through a well-defined, API-first approach that supports standardized interfaces for third-party services and custom extensions. The solution platform supports multiple touchpoints, including point of sale, self-checkout, mobile point of sale and back-office operations through harmonized front ends. As part of the partnership, Diebold Nixdorf has a dedicated presence in the Kitestring Innovation Lab, giving retailers a handson, vendor-neutral environment to evaluate point-of-sale and omnichannel solutions. “This partnership helps retailers to figure out how seamless retail experiences and personalized interactions can look like today, and offers us a great opportunity to expand our footprint in North America,” says Ed McCabe, Diebold Nixdorf’s head of North American retail sales. “Having Diebold Nixdorf embedded in our innovation lab strengthens our ability to test, validate and innovate in real-world retail environments,” says Lindsay Schwab, Kitestring’s head of partnerships. “That level of immersion allows us to move retailers beyond standard implementations into purpose-built solutions designed for their growth. Our hands-on, agnostic approach enables us to prototype and validate enhancements that do not exist out of the box.”

Cohesive Approaches

Collaborations are allowing solution providers to extend their reach and strengthen their impact on checkout enhancements. Most recently, Kitestring Technical Services, a full-service technology firm based in Bentonville, Ark., partnered with Mobile payments, including Apple Pay, store-created wallets and QR codes, are now almost universal among retailers. PROGRESSIVE GROCER May 2026

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Checkout of the Future Meanwhile, Laval, Quebec-based Loc Software is helping drive Diebold Nixdorf’s hardware, partnering to create an integrated solution that delivers “faster transaction processing, cleaner exception handling and seamless associate intervention,” explains Guy Leger, Loc’s VP of sales. “The Loc platform communicates natively with Diebold Nixdorf hardware. Together, we give grocery retailers a fully integrated, bestin-class solution.” That means a streamlined experience for shoppers, who navigate their transaction with minimal friction using flexible payment options that include contactless and mobile. Meanwhile, for associates, the solution offers technology that handles the complexity behind the scenes, simplifying processes and freeing them to focus on customer service. “The result is a self-checkout environment where associates are more present, more effective and more connected to the customers they serve,” Leger says.

Additionally, Seattle-based Amazon is bringing the latest iteration of its smart shopping cart to dozens of Whole Foods Market locations across the United States this year. Dash Cart, which debuted in select Amazon Fresh stores in 2020, allows shoppers to scan items as they place them in the cart and then exit through a designated lane, with payment processed automatically and no need to stop at a register. Integration with Amazon’s virtual assistant, Alexa, allows customers to build their grocery lists at home and then view them directly on the cart while shopping. An interactive on-screen store map guides shoppers toward products and suggests personalized deals based on nearby items. Receipts are tracked and adjusted in real time; the cart’s cameras, sensors and software automatically recognize changes and update the total. Even produce scanning can now be done in-cart, using a built-in scale to weigh fruits and vegetables on the go, with integrated cameras, sensors and AI software confirming accurate pricing. Shaping Agentic Commerce Retail applications of checkout technoloNot to be outdone, Instacart is teamgy demonstrate its viability and success ing with AI provider Nvidia to turn its to operators looking to up their game. Caper Cart smart carts into a continFor example, at French grocery store uous brick-and-mortar store learning chain Intermarché, AI-powered checkout system. intelligence quickly became part of daily Caper Carts are equipped with basVynamic Smart Vision from Diebold Nixdorf operations. Within months of deploying ket-facing camera sensors, scales, loobserves item interactions and identifies Diebold Nixdorf systems, the retailer saw behaviors that may indicate potential shrink. cation-tracking systems, outward-facing transaction errors drop significantly and cameras and an Nvidia Jetson edge AI staff interventions decline. device on each cart that runs advanced Laurent Hugou, owner of Intermarché’s La Farlède sensor fusion. The system creates a shopping experience decoder store and president of Stime, the IT department of to understand user actions, item information, location and shelf Bondoufle, France-based parent company Groupement information. Mousquetaires, notes that within six months, the techThousands of Caper Carts are currently deployed across more nology had become indispensable to day-to-day operthan 100 cities, with implementation reportedly tripling year over ations. “We have seen a significant reduction in errors, year. According to San Francisco-based Instacart, its vision is to which eases the workload for our team and improves build a “grocery world” model, a foundational AI system that unthe experience for our customers,” Hugou says. derstands how products relate to each other, how customers make Meanwhile, Walmart has launched a ChatGPT-based decisions and how stores operate. “The future of retail isn’t physical experience designed to let shoppers find products in or digital,” David McIntosh, Instacart’s chief connected stores the AI-based chat and then purchase them in a tailored officer, observes in a corporate blog post. “It’s a unified experience Walmart environment. fueled by this continuous learning system.” Available in web browsers, the experience will also Instacart offers an agentic shopping experience via Caper Carts launch with app access through iOS and Android. “By with a solution called Cart Assistant, designed to help customers partnering closely with OpenAI, we’ve been able to plan meals and build carts faster through a personalized experilearn together as we move quickly to shape what agenence. Cincinnati-based Kroger is one of the first retailers to pilot the tic commerce can become,” says Daniel Danker, EVP solution. of AI acceleration, product and design at Bentonville, “Instacart’s approach – combining edge computing, accelerated Ark.-based Walmart. AI infrastructure and deep marketplace data – unifies online and

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in-store intelligence by processing signals at the edge and scaling intelligence in the cloud to lay the foundation for the next era of omnichannel retail,” says Azita Martin, VP and GM of retail at Santa Clara, Calif.-based Nvidia. Further, Instacart is the first grocery partner to launch a fully functioning app inside ChatGPT. Featuring instant checkout and AI shopping assistants, the integration allows users to complete their entire shopping experience without leaving a conversation window or having to switch tabs. “It’s another step toward bringing our vision to life,” says Nick Turley, VP, head of ChatGPT at San Francisco-based OpenAI, “where AI delivers helpful suggestions and connects directly to real-world services, saving people time and effort.”

External Forces

Broader issues and policies are also affecting the checkout experience. U.S. grocery retailers are facing mounting pressures as regulations evolve across payments, staffing and loss prevention, notes Angela Merryfield, marketing representative at Auto-Star. “Federal SNAP/EBT program expansions may require complex point-of-sale upgrades, while the rise of organized retail crime leads legislators to find solutions in self-checkout mandates that could threaten labor budgets,” Merryfield writes in a recent company blog post. “The $112 billion annual retail theft crisis is amplified by shrinking basket sizes at the checkout due to inflation and a tightening of SNAP spending. These market challenges force grocers to rethink checkout operations, inventory planning, staffing models and loss prevention strategies.” Some communities have adopted measures that local officials contend will enhance worker protection and customer service while discouraging theft. For example, Costa Mesa, Calif., now requires grocery stores and retail pharmacies to staff their self-checkout areas with dedicated employees. The ordinance mandates that one employee oversee no more than three self-checkout machines at a time and that stores must keep at least one staffed checkout lane open before any self-checkout stations can be activated. The rules apply to grocery stores larger than 15,000 square feet and all drug stores with a self-checkout. Costa Mesa’s ordinance is nearly identical to one adopted by Long Beach, Calif., last August.

Checkout technology delivers faster flow, fewer errors and a smoother experience for both shoppers and store teams.

What’s Next?

According to Auto-Star’s Symmonds, the winners at checkout “will be the ones that make checkout flexible for shoppers, manageable for retailers and realistic for stores that are dealing with labor pressure, shrink, pricing changes, promotional complexity and support demands every day. In grocery especially, the future belongs to solutions that can handle complexity without making the store harder to run.” Loc’s Leger contends that the grocery industry is at an inflection point. “Shoppers have higher expectations than ever, labor pressures aren’t easing and shrink remains a significant challenge,” he observes. “Retailers who invest in tightly integrated, intelligent checkout solutions, rather than patching together point solutions, come out ahead on all three fronts. In five years, the line between self-service and associate-assisted checkout will largely disappear. Shoppers will move through the store in whatever way suits them, whether that’s a traditional lane, self-checkout or a frictionless walk-out model, and the technology underneath will flex to meet them.” Looking forward, the checkout experience will feel less like a separate task and more like a natural conclusion to shopping, Diebold Nixdorf’s Hoerttrich predicts. “Self-checkout will continue to expand, but it will be smarter, more adaptive and more trusted than today’s first-generation systems,” he says. “AI will operate quietly in the background —handling item identification, produce recognition, age checks and loss prevention with minimal disruption — while associates focus on customer engagement rather than exception handling.” Retailers will gain real-time visibility into front “In five years, the line between self-service and end performance, increasing throughput and checkout availability while managing costs associate-assisted checkout will largely disappear. more effectively, Hoerttrich asserts: “Rather Shoppers will move through the store in whatever than choosing between speed, control or way suits them, whether that’s a traditional lane, experience, retailers will increasingly deliver self-checkout or a frictionless walk-out model, and all three at once, making intelligent checkout the technology underneath will flex to meet them.” a foundational element of the modern grocery store.” —Guy Leger, Loc Software PROGRESSIVE GROCER May 2026

EQUIPMENT & DESIGN

Store Remodels

The Grocer’s Guide to Remodeling in 2026 PG SPE AKS TO INDUSTRY E XPERTS TO FIND OUT WHAT MAKES – OR BRE AKS – A GROCERY STORE RENOVATION.

G By Samantha Schober

rocery remodels are deceptively simple to those taking their first looks at the process. While tweaks to lighting and fixtures may work for some, few retail undertakings are as logistically demanding as a full-store remodel: Errors not caught early can easily unravel months of work and do lasting damage to a business if scaled improperly. To find out what it actually takes to plan and execute a remodel that delivers, Progressive Grocer tapped three process veterans to walk us through the journey, from the first client conversation to the partner do’s (and don’ts), to the final punch walk.

Refresh Versus Reinvention

PHOTO CREDIT: LANDINI ASSOCIATES

The most important question in any remodel has nothing to do with design. Before any decisions are made, grocers need to settle a more fundamental question. Mark Landini, co-founder of Sydney-based interdisciplinary design firm Landini Associates, words it this way: Does your trading model need more “makeup or muscle”– a “refresh or reinvention?” The distinction between a “refresh” and “reinvention” remodel is important, Landini says, because the two require vastly different commitments of time, money and organizational will. A surface refresh and a structural reinvention are each completely different undertakings, and conflating them at the start produces projects that are either too ambitious for their budgets or too inadequate when addressing problems. “A supermarket is a delightfully romantic term for what is, in reality, a finely tuned selling machine,” Landini notes. “Every machine is constructed from multiple moving parts, a framework that is often rigid and hard to change, systems that make it function and a visible layer that expresses all this. So, the first task is understanding what degree of challenge the business can realistically manage.” To Landini, real impact only comes from “knowing where you can intervene, what can flex, what cannot and to what extent you need to repurpose or reinvent.” Christen Soares, principal at San Francisco-based Field —Christen Soares, Field Paoli Architects

Paoli Architects, takes a similarly diagnostic approach from an architectural angle. “Start by asking the right questions before any design work begins,” Soares advises. “Understanding the ‘why’ behind a remodel is critical – what’s not working today, where the pain points are and what success looks like from both an operational and customer perspective.” That scoping conversation should surface layout inefficiencies, recurring environmental health compliance problems and logistical constraints like phasing or remaining open during construction. Jill Shelton, national account manager at Jasper, Ga.-based Royston Group, a manufacturer of retail fixtures and signage, names one step that operators frequently underestimate: inventory management. Her team encourages grocers to begin managing inventory several months in advance by selling off discontinued items, processing returns to vendors and clearing expired products. “This frees space on the sales floor and minimizes employee labor by taking care of these steps prior to construction,” she says. Landini’s tool for maintaining focus across all of these early conversations is what he calls a “driving idea”– a simple, single objective that ties together the decision-making process across every department involved. For Italian supermarket chain Esselunga, that driving idea was “Dimmi”– Italian for “tell me about it.” That word, he explains, enabled one of the world’s highest-performing supermarkets to rethink its layout and customer experience at a fundamental level in “the kind of shift not seen

“Understanding the ‘why’ behind a remodel is critical – what’s not working today, where the pain points are and what success looks like from both an operational and customer perspective.”

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Whether a display needs new lighting, fixtures or shelf labels, product presentation can’t get lost in the noise.

since Piggly Wiggly introduced self-service in 1916.” Large-format retail is managed through multiple business silos, from operations to merchandising to procurement to facilities, and none of these do remodels regularly. Without a clear, shared objective, each team often defaults to its own agenda and wires start getting crossed. “Complexity is easy,” Landini observes. “Simplicity is hard.”

The Early Bird Gets the Worm

PHOTO CREDIT: FIELD PAOLI ARCHITECTS

Ask all three experts when a grocer should begin planning and you’ll get the same answer: sooner than you currently are. A light refresh might only require a few months of lead time, Soares notes, while a full-store remodel may demand a year or more, from the initial planning stages through the end of construction. Depending on scale and ambition, Landini places the design and construction window alone at six to 18 months, with ongoing collaboration across multiple years becoming fairly common. “The key is giving the project enough runway upfront to avoid rushed decisions later,” Soares says, “which are often where cost and schedule impacts arise.” Her breakdown of a typical well-run timeline is thus: programming and fixture planning in four to six weeks; design development over four to eight weeks, depending on complexity; construction documents in eight to 12 weeks; and construction itself, which stretches from overnight work to multi-month phased efforts for full-store overhauls.

“In grocery, product is the hero, so the space should serve it, not compete with it.” —Mark Landini, Landini Associates From a construction standpoint, Shelton puts the full cradle-to-completion timeline for a well-managed store remodel at roughly six months, with the work done in-store running from two to three months, depending on square footage. Her standard sequence includes a site visit, scope and budget review, project approval, construction, final completion and a “punch walk”– with all items from that walk addressed within 48 hours. “The critical part is not time, but sequence, and the discipline of a driving idea to bring clarity over opinion,” Landini adds. “Too often, stores are designed from the envelope inward, forcing operations to adapt. Start with the product offer, understand limitations and build outwards. Let the operating model shape the experience, not fight it. The real cost is not the time of design; it is getting it wrong at scale.” One practical pre-construction rule that both Soares and Shelton hold themselves to is that construction should not be scheduled until the permit is physically in hand. An experienced architecture and engineering firm with jurisdictional relationships can accelerate that process considerably. What grocers should also guard against is the planning theater trap – early meetings, early documents and then a compressed thinking phase once deadlines close in.

Picking Your Partners Wisely

Finding the right firms to partner with is half the battle when planning a remodel. Landini identifies three lines of inquiry that reveal whether a prospective partner actually belongs on a grocery remodel project or just has a good-looking portfolio. “First: Do they understand retail as a business?” he asks. “If the conversation does not quickly move to margin, labor and performance, you are talking to a stylist, not a strategic partner.” The second question is whether they can engage with operational systems. “Most focus on the skin, but the real value sits deeper: in the bones, layout and flow, and the muscle, how the store operates,” Landini explains. “If they cannot engage there, the outcome will be superficial.” Landini’s third ask is all about the products on show. “Do they design from the product outward or the environment in? In grocery, product is the hero, so the space should serve it, not compete with it.”

Generous remodeling deadlines prevent more ambitious projects from running out of runway. PROGRESSIVE GROCER May 2026

EQUIPMENT & DESIGN

Store Remodels

PHOTO CREDIT: LANDINI ASSOCIATES

A live grocery environment is vastly different from any other in the retail sphere, so having a partner with relevant experience is crucial to success.

Active-store experience is Soares’ non-negotiable. Ground-up construction is complicated, as remodeling a live grocery environment adds food safety, temperature con—Mark Landini, Landini Associates trol, phasing and continuous product availability on top of all of the other expected challenges. “Experience matters, especially with existing buildings and active grocery environments,” notes Soares. “Teams that understand phased construction, have experience navigating local jurisdictions and can anticipate environmental health requirements will be better positioned to guide the project smoothly and avoid costly surprises.” When it comes to contractor quality, Shelton warns that cost-cutting measures tend to backfire: “We have seen circumstances where the partner hires the cheapest, and the cheapest is usually not the best.” Schedule slippage and substandard results are common outcomes, and fixing them typically costs more than the original savings. Demolition, mechanical work and other high-impact activities should also be planned for off-peak or overnight hours wherever possible, Shelton says. Brand literacy matters as well: A construction or design partner that doesn’t understand what a grocery brand stands for will produce a remodel that doesn’t reflect it, no matter how technically competent the execution might be.

Landini’s term for the most common root problem is “Appet-Ability;” specifically, the imbalance between what leadership wants to achieve and what they’re actually willing to fund, commit to and sustain. “Too often, leadership defines a bold appetite, then constrains the ability to execute – when that happens, compromise is inevitable,” he explains. “Strong leadership does two things simultaneously: It sets a clear direction and creates the conditions to deliver it.” He’s equally pointed regarding committee-driven projects: “Transformation should never be given to a committee. A committee’s job is to fine-tune the status quo, not to invent the future. They should be engaged to collectively pressure-test it before scaling.” Two culprits come up most often for Soares: long equipment lead times and changes introduced late in the process. Both of these things, she emphasizes, are avoidable with sufficient planning. “If key equipment isn’t identified and procured early, it can create significant schedule delays,” Soares says. “Similarly, changes introduced late in the design or construction process tend to have outsized impacts on both cost and timeline. The more alignment the team can achieve upfront – on scope, budget and priorities – the more likely the project is to stay on track.” Scope creep is a constant concern for Shelton, persistent enough for her to hold firm to a clear rule: No additional work proceeds until the client has reviewed it and signed off on it. She also addresses the reality of discoveries in existing buildings – the demo that uncovers mold, or the slab that needs remediation – and emphasizes that these conditions shouldn’t be made to cause friction in the partnership. “The client that understands that this is a discovery issue and not the partner just trying to get money through a change order truly helps the relationship and allows the project to move forward,” Shelton notes.

Understanding the Warning Signs

When a project fails, it typically can’t be traced back to a single mistake. One error tends to snowball into several, which continue to snowball into several more. To keep shoppers coming through the doors during construction, remodeling teams should take steps to minimize disruption to the customer experience.

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PHOTO CREDIT: FIELD PAOLI ARCHITECTS

“Any remodeling’s aim should be to design for scale, reducing capital costs whilst increasing profitability.”

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EQUIPMENT & DESIGN

Store Remodels Underneath most of these patterns of failure is a breakdown in communication. Early-warning signs, per Landini, include unclear leadership and decisions being made by consensus rather than by conviction. Soares describes what this breakdown might look like as it happens: “Communication becomes reactive or defensive, small issues escalate and the collaborative mindset shifts toward an ‘us versus them’ dynamic.” Shelton’s signal is more straightforward – she notes that a partner that stops following the phase plan without telling the client is already behind.

“Not only is it important for partners to communicate issues upfront, but it’s also important for the client to understand that our goal is to complete the remodel safely while minimizing disruptions.” —Jill Shelton, Royston Group

What Good Looks Like

In Landini’s words, projects that go well are “front-loaded with thinking.” By his breakdown, 20%-30% of the effort should go toward strategy and concept; 30%-40% to development, prototyping and testing; and 30%-40% to initial execution, with scaling treated as its own separate, aligned program. In Landini’s experience, trouble arises when projects reverse this. “What they should all have in common is a clear, simple idea at the center: strong governance, someone who owns decisions, and relentless focus on consistency during rollout,” he says. “Bad projects compress the thinking, expand the execution and mess about in rollout, and that’s where costs and complexity blow out. Any remodeling’s aim should be to design for scale, reducing capital costs whilst increasing profitability.” Shelton doubles down on the criticality of good communication to a successful partnership. “Although we love to think that the project will always run smoothly, it’s impossible for everything to go as planned with construction, because of the nature of what we do,” she admits. “Not only is it important for partners to communicate issues upfront, but it’s also important for the client to understand that our goal is to complete the remodel safely while minimizing disruptions.” “When challenges arise — as they inevitably do — a strong partnership approaches them as shared problems to solve, rather than

PHOTO CREDIT: FIELD PAOLI ARCHITECTS

In-store service is one of the strongest reasons that customers choose a brick-and-mortar market over a digital storefront.

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issues to assign blame,” Soares concurs. “A healthy client-partner relationship starts with trust and is sustained through clear roles, mutual respect and a shared commitment to the project’s success. Both sides stay aligned around common goals and maintain a strong culture of open dialogue where ideas can be explored and refined collaboratively.”

Looking Ahead

A number of things are reshaping remodel priorities right now, but according to Soares, it has a lot less to do with aesthetics and a lot more to do with labor economics. She points to rising labor costs as the central force restructuring how service departments are laid out; as those costs stack up on top of rising product costs, grocers are reconsidering workflows and adjacencies to uphold service quality while cutting staff hours. In-store service remains one of the strongest reasons that customers choose a brick-and-mortar market over a digital storefront. “The challenge – and opportunity – is finding the right balance: creating layouts and workflows that support a strong service experience while strategically reducing the labor required to deliver it,” Soares says. For her part, Shelton is tracking a corresponding shift in how remodel budgets get deployed. Instead of spreading investments thinly across an entire store, more grocers are picking one focal category and making it exceptional. Whether that be upgraded bakeries or expanded pet sections, retailers are boosting these departments with new fixtures, lighting upgrades, stronger graphics and repositioned footprints designed to direct customer traffic. Energy-efficiency upgrades, particularly in refrigeration, lighting and mechanical systems, tend to layer on top of whatever aesthetic refresh is underway, especially as sustainability becomes a stronger selling point for customers. As consumers increasingly yearn for the pre-digital days amid a barrage of retail media and AI technology, Landini says that the human element is going to become a larger piece of the puzzle. What people are actually seeking isn’t the data and logic driving most retail systems, but solutions that fit how they live, a sense of belonging, and the energy that comes from being in a space with other people. “Human empathy,” Landini notes, “is a trend we increasingly promote.”

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Facility Maintenance

Connect Your Maintenance Systems A “WHOLE-STORE” TECH APPROACH LE TS RE TAILERS DE TECT PROBLEMS E ARLY.

N By Debby Garbato

o man [or woman] stands alone,” writer John Donne observed in 1624. His famous text describes humanity’s interconnectivity, with every person part of a larger whole. Today, interconnectivity is also defining facility maintenance in supermarkets, with centralized monitoring and integration of systems alerting personnel to problems before they spiral out of control. Unlike in years past, this “whole-store approach” makes retailers proactive rather than reactive, letting them reduce equipment downtime while saving money on repairs, better serving shoppers and, ultimately, boosting the bottom line. With remote monitoring, critical systems can be overseen from almost anywhere. “Historically, systems were managed reactively,” says Michele Hix, VP of strategic customers at Schneider Electric, whose U.S. headquarters is in Boston. “Today, retailers are adopting more proactive, data-driven approaches, using real-time monitoring, predictive analytics and centralized visibility to identify issues earlier and intervene before small problems become major disruptors.” Unlike office buildings or department stores, many grocers operate 24/7, and much of their merchandise can spoil. “Supermarkets face unique challenges because operations never stop,” Hix notes. “Critical areas include refrigeration, electrical infrastructure and HVAC. All directly impact food safety, shopper comfort and uptime.” Refrigeration alone, she adds, can account for nearly 40% of a grocer’s total energy use. Schneider helps retailers digitally connect critical building, electrical, refrigeration and energy systems into a centralized platform. This lets facility

Schneider Electric helps grocers digitally connect essential building, electrical, refrigeration and energy systems into a centralized platform.

maintenance teams monitor performance remotely, “identifying early warning signs and tracking maintenance history at the store or portfolio level,” Hix says. “Digital tools prioritize work based on risk and need, rather than relying on static calendars. Maintenance becomes more consistent, efficient and less dependent on institutional knowledge.”

Streamlining With Corrigo

Many grocers use Corrigo, a cloud-based facilities management software that provides AI-enabled workflows and transformative business intelligence. It offers tools for tracking and resolution, and it supports task automation, preventive maintenance scheduling and performance reporting. Corrigo is owned by Chicago-based JLL, a $19 billion global commercial real estate services company. “This work order management system tracks data tied to a specific location,” says Sarah Wexler, managing director of JLL’s consumer goods and services division. “Technicians see current repairs and upcoming maintenance. Retailers can reduce costs by performing functions together.” Three years ago, New Seasons Market, in Portland, Ore., began using Corrigo, which is now a key part of its preventive-maintenance picture. All service providers are on the system. “A store may not know who to call 24/7 for refrigeration services,” notes Steve Kelly, facilities project manager at New Seasons, “but they can go on the website and execute a work order, which dispatches to a service provider. It keeps track of price quotes and alerts us if they exceed a certain amount.”

Key Takeaways  Centralized monitoring and integration of facility maintenance systems enable retailers to be proactive rather than reactive.  Stricter environmental and food safety rules make equipment monitoring even more important.  Routine equipment cleaning and vermin control are key areas of facility maintenance.

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FROM THE

TO THE All-In-One Nationwide Self-Performing Facility Service Provider

Still managing multiple vendors? Let’s Simplify That. 866-970-8638 • www.keptcompanies.com

OPERATIONAL SPOTLIGHT

Facility Maintenance Corrigo generates reports “very easily,” adds Kelly. “We can see repairs by stores, region or equipment. It tells us if equipment had eight repairs over several months and might need to be replaced. It helps us evaluate cost and spend. It has predictive maintenance schedules, which we program.” Tops Markets LLC, based in Williamsville, N.Y. and part of Schenectady, N.Y.-based Northeast Grocery, also employs Corrigo. “It lets you know very quickly where there’s a problem and helps identify issues and problem stores early through remote monitoring,” says Chris Watson, Tops’ senior director of construction, maintenance and engineering. “It’s amazing how quickly it goes through data.” Being proactive also involves seasonal preparation, which starts by analyzing failures from the previous year’s extreme-weather periods, including which HVAC units struggled during summer and which heating systems experienced issues during winter. “Before summer, we’re inspecting and servicing cooling systems, checking refrigeration compressors and ensuring backup systems are operational,” Wexler says. “Before winter, we’re testing heating equipment, checking insulation around refrigeration cases to prevent them from overworking, and making sure roof drainage systems can handle snow melt.” Albertsons Cos. and Wakefern Food Corp. also use Corrigo.

Tops’ New York stores must contend with regulations requiring retailers to phase down high global-warming refrigerants.

Chilly EPA Mandates

Stricter environmental and food safety rules are making equipment monitoring even more important, particularly for refrigerators and freezers. In Oregon, for example, perishable food must be stored at or below 41°F, with optimal temperatures being 35°F–38°F, and

“Digital tools prioritize work based on risk and need, rather than relying on static calendars. Maintenance becomes more consistent, efficient and less dependent on institutional knowledge.” —Michele Hix, Schneider Electric

freezer temperatures should be 0°F or lower. Before, maximum refrigerator temperature was 45°F. The shift has forced some retailers to buy new cold cases, according to Kelly. The Environmental Protection Agency also has more requirements, prompting New Seasons to invest in Connect Plus, a monitoring system that detects freon leaks “better than what we have now,” he adds. Strict rules mandate that refrigerant leaks be reported. New York state’s DEC Part 494 ranks among the nation’s toughest refrigerant regulations, requiring retailers to phase down high global-warming potential (GWP) refrigerants, curb leaks and adopt lower-impact systems. The rule also enforces strict repair timelines and detailed reporting. GWP measures how much heat a refrigerant traps compared with carbon dioxide. Traditional refrigerants like hydrofluorocarbons (HFCs) have high GWP and a significant climate impact. Newer alternatives are more environmentally friendly. “Supermarkets are a primary focus because of their large refrigeration systems and historically high leak rates,” Watson says. “With requirements for low-GWP equipment and faster leak repairs, we’ll see more service calls, tighter compliance standards and greater pressure on maintenance teams.” Energy codes are also evolving, particularly for lighting and HVAC. Standards vary by jurisdiction. “We’re seeing jurisdictions implement stricter requirements around emergency power and food safety backup systems, which makes sense given how critical uninterrupted refrigeration is,” Wexler notes. Corrigo, she adds, “stays ahead” of the new environmental codes that are continually being enacted at the national, regional and local levels. Pest control companies face regulatory challenges, too. Rodent baits have come under fire, particularly second-generation anticoagulants. “They’re pretty much banned in California and some other areas,” says John Bell, a board-certified entomologist (BCE), Certified Professional — Food Safety (CP-FS) and

Kept offers a plethora of cleaning and other services, including freezer and refrigerator cleaning (shown).

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PR E S E NTE D BY

market technical director at Rentokil, whose U.S. headquarters is in Reading, Pa. “And neonicotinoid, an insect chemical, has come under the microscope because it’s hazardous to bees. There are regulations restricting where we can apply products. We must be careful how we use them.”

“Technology is helping us find areas of vulnerability.”

Get Clean and Bug Off

Kept’s proprietary technology tracks myriad details about each service on both the granular and largescale levels for large-portfolio customers. “Our technology ensures retailers get what they pay for,” Cunliffe says. “All work has photo documentation and is GPS backed. Data we provide can report everything from your total spend versus budget down to how many gallons of water we recover during a service on a specific date at one of your sites.” Insects and rodents can also affect the customer experience, leading pest control companies to be more targeted in their approach. “Pests carry diseases, and there’s contamination,” Bell points out. “If you’re buying a cake and see roaches, it’s not a place you’d want to get food from. If you see a rat running, it can make it onto social media. The store can be super-clean, but maybe someone left a door open.” With increasing numbers of chemicals banned or restricted, Rentokil is using technology to do some of the work. “People used to say, ‘spray and pray,’” Bell notes, “but with integrated technologies, that’s beginning to change. Technology is helping us find areas of vulnerability.” Rentokil uses a proprietary electronic monitoring system. When a mouse is trapped, information is uploaded to a control panel, and then goes into a database, which indicates where the mouse was caught — say, second-floor receiving. Rentokil can then send a technician, who can investigate how the mouse entered. “But if technicians only make scheduled visits every two to four weeks, the mouse could already have babies,” Bell observes. “The system helps control populations and prevent breeding.” There are also insect light traps that monitor and report fly activity. “It all goes into the database,” Bell says. “At any given time, I can identify where pests were captured, and a heat map can show where recurring pest areas are so we can learn the cause — a structural hole, vendor delivery, etc. Then we can make recommendations to the store.” AI is also helping Rentokil collect and compare data, such as how many disparate businesses in a given area have similar pest problems. “We’re not quite there yet, but AI is helping to pinpoint issues and manage data,” Bell notes. Despite major advances in technology and data collection, some retailers still use legacy systems with fragmented data, according to JLL’s Wexler. “Getting data right has helped many cut costs,” she adds. “Moving towards the future, we see AI as an augmentation tool for workforce and advanced analytics.”

Routine equipment cleaning and controlling vermin are important areas of facility maintenance. Fairfield, N.J.-based Kept Cos. offers a suite of cleaning and other facility services. With 1,700 employees and 140 locations, the company is a direct provider that doesn’t subcontract. This allows Kept to clean everything – store cases, kitchen exhaust equipment and HVAC coil systems inside stores, along with power washing, building painting and line striping outside. Kept also maintains and retrieves shopping carts, resulting in a six- or seven-fold ROI versus replacing carts. “When carts do not have to be replaced and we can use our technology to track them and return them to stores, everyone wins,” asserts Lauren Cunliffe, Kept’s VP of sales and client relations. These service areas are consumer touchpoints. “It’s about elevating the customer experience,” Cunliffe adds. “Without a positive store appearance, customers won’t return.” She also notes that it’s “more affordable and saves time” to have one company provide multiple services.

Walmart Markets Its Maintenance Services By Debby Garbato

n mid-April, Walmart launched Upstream Facility Services, a new entity that brings its in-house maintenance services to companies nationwide. Built on the systems and scale that support thousands of Walmart and Sam’s Club locations, Upstream targets businesses operating across distributed, multi-location footprints with repair and general maintenance services. Current services involve HVAC, refrigeration, general maintenance, electrical and plumbing. Walmart’s large-scale operation employs 8,000 technicians and field leaders nationwide, supporting 5,200 locations. Designed for businesses with complex operations, Upstream provides real-time visibility into services across multiple sites. Technological tools support routing, scheduling and performance tracking. “We’ve spent years building one of the largest in-house service operations in the country,” says R.J. Zanes, VP of facility services for the Bentonville, Ark.-based retailer. “Upstream takes that capability beyond our walls, combining national scale, skilled technicians and real-time visibility to help businesses run with fewer disruptions.”

—John Bell, Rentokil

PROGRESSIVE GROCER May 2026

TECHNOLOGY

Price and Promotion Optimization

Getting It Right CLE ARDEMAND’S CHIEF STR ATEGY OFFICER HIGHLIGHTS THE IMPORTANCE OF PRICING AND PROMOTIONS TO REGIONAL GROCERY RE TAILERS’ OPER ATIONS.

By Bridget Goldschmidt

or regional food retailers that want to hone their pricing and promotional strategies but fear that they can’t compete with the big guys, there is help – Scottsdale, Ariz.-based ClearDemand offers solutions tailored specifically to these operators. Progressive Grocer recently spoke with ClearDemand Chief Strategy Officer Seth Nieman about regional grocers’ need for effective pricing and promotions.

Progressive Grocer: What effect do pricing and promotions have on a consumer’s decision to shop at a particular retailer? Seth Nieman: Research shows that pricing has a greater overall impact on where a customer decides to shop. We often like to quote the findings of a Progressive Grocer survey that found pricing to be the No. 1 factor in determining a customer’s store selection. Promotions, which can be inconsistent, require hurdles to qualify and lead customers to question the overall value they’re receiving, fell further down the list, after qualities such as freshness, product quality and product availability. Promotions are still an important part of most retailers’ overall value proposition, but overreliance on them to deliver value is a dangerous path to take. Customers are feeling the effects of inflation, have more competitive shopping options at their fingertips than ever before, and are looking for simple, straightforward savings. PG: How can regional grocers better compete in these areas with national giants that have more resources, technology and headcount? SN: Historically, many regional grocers have managed pricing and promotions completely manually, and some still do today. This approach is extremely time-consuming and makes it difficult to accurately measure outcomes, learn from results or correct past mistakes. Rather than being designed broadly to serve multiple verticals, our software is purpose-built for this space, and we believe that focus gives us a real competitive advantage over more generic tools. PG: What role can AI play in solving these issues, and what are the pros and cons of implementing it for retailers? SN: We’ve seen AI create the most value in areas where there are huge amounts of data, highly repeatable workflows and constant decision-making – exactly the type of environment in which a

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A closed-loop system is at the core of ClearDemand’s strategy to create a robust data foundation for each of its customers that encompasses historical data.

retailer operates. A recent McKinsey study found that by leveraging AI agents, or AI that can analyze, plan and take action, merchants could save up to 40% of their time. That’s a significant opportunity, but there are certainly some risks to be aware of. The first that comes to mind is a poor data foundation, which can lead the AI to make bad recommendations. Bad data in, bad data out. Second is security – retailers manage highly sensitive data and should treat any AI tool that accesses their data with a high level of scrutiny. Another mistake is a single AI deployment strategy across all areas of the company. The companies seeing the most ROI from their AI investment are thinking strategically about how and where to best leverage AI within their organization. No single AI is good at everything (yet), and deploying a generic tool everywhere can often hurt more than help.

PG: What are ClearDemand’s latest solutions to address these problems, and what value will retailers see from them? SN: A lot of risk comes from trying to force broad AI tools into highly specialized retail workflows. ClearDemand is addressing that by building vertical agents designed specifically to operate within the commercial planning function of grocers and c-stores. Unlike horizontal agents, which are designed to work across a broad range of industries and tasks, vertical agents focus on a single industry and a more narrow range of tasks, allowing them to perform better on complex, industry-specific tasks like pricing and promotion. Our agents help teams operate more effectively by automating routine analysis, surfacing the exceptions that matter and giving people more time back for strategic work – all while operating on a secure, governed data foundation. Retailers will see real strategic value from our agents as well: An agent working under the guidance of a category manager to analyze category strategy will be able to test hundreds of different scenarios to find the optimal result, something that simply isn’t feasible for a category manager working alone. PG: What do you see as emerging pricing and promotional issues that retailers need to pay more attention to? SN: Execution speed is becoming a bigger differentiator than many retailers realize. In today’s market, the ability to respond quickly to competitor moves, cost changes and shifts in demand is a real source of competitive advantage. If the market moves and you’re still figuring out your response weeks later, the market has likely shifted again, and your response is already

“We’ve seen AI create the most value in areas where there are huge amounts of data, highly repeatable workflows and constant decisionmaking – exactly the type of environment in which a retailer operates.” —Seth Nieman, Chief Strategy Officer, ClearDemand

Pricing and promotions are important parts of most retailers’ overall value proposition.

outdated. In a fast-paced industry like retail, speed of execution can be just as powerful as the strategy itself. Also, promotion optimization deserves a callout, given how much opportunity still remains. While many retailers have adopted advanced price optimization solutions, promotion planning is still often managed through a relatively manual process with limited optimization support or automation. We’ve seen more grocers start to adopt tools like ClearDemand to bring better data, sharper insights and a more holistic view of price and promotion to that process. PG: What will the next iteration of pricing/promotion optimization solutions look like at Clear Demand? SN: ClearDemand is setting the foundation for an AI-driven future by reinvesting in our product and core capabilities, leveraging vertical agents to help our customers operate with more speed, efficiency and accuracy. We’ve made some major commitments in our customer-led roadmap, including recently introducing the next generation of our competitive intelligence, price and promotion optimization solution, allowing our customers to work more holistically across each of these areas. This closed-loop system is at the core of our strategy, which is to create a robust data foundation for each of our customers that encompasses historical data, ClearDemand’s insights and actual results so the system can continuously learn, adapt and improve. PROGRESSIVE GROCER May 2026

FEATURE

Research

The Utility Mandate: Why 2026 Shoppers are Swapping Inspiration for Efficiency

AN INAUGUR AL SURVE Y FINDS THAT CONSUMERS ARE FOCUSED ON MA XIMIZING VALUE AND MINIMIZING MENTAL EFFORT.

By the Path to Purchase Institute

Precision Over Inspiration

or years, the grocery industry has chased “shopper inspiration,” leaning on everything from colorful endcaps to vibrant digital content to spark new meal ideas and drive incremental sales. However, the Path to Purchase Institute’s inaugural 2026 Shopper Pulse Survey reveals a pivot: Modern shoppers aren’t necessarily looking for a muse – they’re looking for a tool. The survey’s Wave 1 results, fielded this past February with more than 1,000 U.S. households participating, highlight a consumer base navigating a perfect storm of macroeconomic friction. Between looming tariffs, benefit reductions and persistent job insecurity, the primary driver of shopper behavior today is a focus on maximizing value and minimizing mental effort.

The pivot toward utility is most evident in how shoppers want to interact with technology. When they were asked where they want tech to help most, the top responses were pragmatic:  Finding the best value (53%)  Saving time while shopping (45%)  Managing a budget (41%) In contrast, secondary features like “discovering products” (32%) or “making sustainable choices” (32%) rank lower in the decision hierarchy. Shoppers are explicitly asking for “GPS-like” store navigation to find items faster, and automated couponing that removes the “chore” of manually activating deals.

Loyalty Is a Value Exchange

The Rise of the Overwhelmed Shopper

Household shopping has become more of a cognitive burden. While most find the task manageable, nearly 20% of shoppers describe the process as “complicated” or “overwhelming.” This decision fatigue is a direct opportunity for brands and retailers. The data suggests that shoppers aren’t necessarily looking for more content, but rather that they want clarity. Clear product information, simple promotions and prepackaged bundles are now winning strategies to reduce the mental load. WHERE WOULD YOU MOST LIKE TECHNOLOGY TO HELP YOU IN THE FUTURE WITH SHOPPING?

Finding the best value for my needs Saving time while shopping Managing my budget Avoiding out-of-stock items

32%

Discovering products that fit my preferences

32%

Making healthier or more sustainable choices

32%

I don’t want more technology involved in shopping

13%

Source: 2026 P2PI Shopper Pulse Study, Wave 1 (February 2026)

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As economic pressures mount, brand loyalty is becoming a secondary concern to the bottom line. About 94% of respondents are spending more time comparing prices before they even step foot in a store. When forced to make trade-offs, 45% are willing to switch from their preferred brand or pack size to get a better deal. Only 6% aren’t willing to make trade-offs at all. For retailers, the most effective triggers are those that provide immediate, tangible rewards. Loyalty rewards and member-only offers (47%) remain the most influential touchpoints, followed closely by instore signage and digital screens (42%). To win the basket in 2026, grocers and CPG brands must move beyond the 53% shiny-object phase of retail media and technology. Success will continue to be mea45% sured by how much time and money you can 41% save a shopper, not just how much content you can show them. P2PI’s quarterly Shopper Pulse research initiative delivers insights into consumer attitudes, behaviors and expectations that are evolving in real time. P2PI members have exclusive access to the results, as well as an opportunity to influence what we ask consumers in future waves.

Today’s Retail Is Complex. We Help You Win It. Join the Path to Purchase Institute (P2PI) and connect with the insights, tools and people driving smarter brand growth.

One Membership. Limitless Opportunities.

The edge in retail and commerce today comes from access — and this is where you get it.

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EDITORS’ PICKS

Food, Beverage & Nonfood Products

 Linking Up

 Eggs on the Go

As part of its mission to reimagine flour-based foods, Egglife Foods Inc. has launched egglife GRAB & GO Breakfast Tacos, expanding its GRAB & GO lineup beyond the original meat-and-cheese roll-ups with heat-and-eat options created for busy mornings. Built with egglife’s signature Egg White Wraps in Chicken Sausage, Egg & Cheddar, and Bacon, Egg & Cheddar varieties, the tacos deliver a high-protein, low-carb take on classic breakfast fare, offering a more convenient, better-for-you option for timepressed but health-conscious consumers. Retailing for a suggested $4.99 per 3-ounce package of any variety, egglife GRAB & GO Breakfast Tacos are now available at participating locations operated by Sheetz – the brand’s first foray into the convenience channel – Target and H-E-B, as well as at select Meijer and Hy-Vee stores. https://www.egglifefoods.com/

Zatarain’s Smoked Sausage is entering one of the fastest-growing segments in cooked dinner sausage with the launch of a link-style line. Made with top-quality, USDA-inspected pork, the links deliver Zatarain’s bold, authentic flavor in three versatile varieties: Andouille, perfect for traditional Cajun dishes like jambalaya and gumbo, as well as in breakfast wraps, as a pizza topping and more; Cheddar Andouille, ideal for elevating creamy rice dishes, stuffed peppers and comfort fare, thanks to its craveable combo of sharp cheese and smoky flavor; and Cajun Herb, seasoned with paprika, thyme, oregano and bay leaves to enliven pastas, sautés and everyday meals. Each variety comes in a convenient 14-ounce vacuum-sealed 5-pack retailing for a suggested $4.66. Zatarain’s is a brand of McCormick & Co. https://www.mccormick.com/pages/zatarains-sausages https://www.mccormickcorporation.com/

 Pass the Pierogies

Mrs. T’s, the nation’s largest producer of frozen pierogies, has now introduced a line of Snack Pierogies, bite-sized golden dumplings made with optimized dough for a faster cook time. Designed for the air fryer and ready in a mere eight minutes, the family-friendly miniature pierogies are stuffed with creamy whipped potatoes and come in four bold trending flavors: Cheddar Sour Cream & Onion, 5 Cheese, Cheddar Ranch Seasoned with Bacon, and Jalapeño Popper. Each 21.06-ounce resealable bag of Mrs. T’s Snack Pierogies contains 50 bite-sized pierogies and has a suggested retail price of $6.49. https://www.mrstspierogies.com/

 It’s in the Bags

The Hefty brand has expanded its popular Zoo Pals lineup with the launch of Hefty Zoo Pals Press to Close Sandwich and Snack Bags, bringing fun characters like Tina the Tiger and Curly the Pig to lunches, snacks and on-the-go moments any time of day. First introduced in the early 2000s, Hefty Zoo Pals Plates returned in summer 2023, followed by the launch of Hefty Zoo Pals Printed Cups in spring 2025. Now, the creatures are featured on Hefty’s trusted Press to Close bags, adding a touch of playfulness to everyday routines. The lineup consists of Sandwich Bags, ideal for packing sandwiches, wraps and other lunchtime fare, with a double-zipper design that creates a secure seal to help keep food fresh, and Snack Bags, offering an easy-grip closure and a reliable seal to keep small bites protected. With this latest rollout, Hefty Zoo Pals is building on its legacy of helping kids engage with their food. Fifty-count Hefty Zoo Pals Bags are now available at Walmart, with the Sandwich Bags available for a suggested retail price of $2.97 and the Snack Bags at $2.67. The bags can also be purchased on Amazon.com in 3-pack bundles, with the Sandwich Bags available for a suggested retail price of $8.91 and the Snack Bags at $8.01. Expanded availability at Target is coming later this spring. Hefty is a brand of Reynolds Consumer Products LLC. https://www.hefty.com/; https://www.reynoldsconsumerproducts.com/

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 Chickpeas Meet Wheat

Banza, the company that introduced chickpea pasta to the U.S. market, is now rolling out Wheat Protein Pasta and Wheat Protein Mac & Cheese. Combining semolina wheat with chickpeas, the Wheat Protein Pasta line delivers 22 grams of protein and 7 grams of fiber per serving while retaining the taste and texture of traditional pasta. The launch — Banza’s first expansion beyond the gluten-free segment — comes in Rotini, Penne and Elbow shapes. Meanwhile, the mac and cheese contains 16 grams of protein and 4 grams of fiber per serving in Cheddar Shells and White Cheddar Shells varieties. Like all Banza pasta, both wheat products are CleanScan Certified by The Detox Project, meaning that they were tested for glyphosate and 400-plus pesticides and showed non-detectable results. The wheat products are produced in a dedicated facility separate from the brand’s gluten-free lines. Originally available exclusively on TikTok Shop, Banza Wheat Protein Pasta and Wheat Protein Mac & Cheese are rolling out nationwide at FreshDirect, Kroger, Sprouts, Target, Publix and Whole Foods Market starting this month. The suggested retail prices are $4.09 per 12-ounce box of any Banza Wheat Protein Pasta and $3.29 per 5.5-ounce box of any variety of Banza Wheat Protein Mac & Cheese. https://www.eatbanza.com/

 Zero Sugar the Hard Way

Lipton Hard Iced Tea, a line of non-carbonated alcoholic beverages made with real brewed Lipton tea, natural flavors and a premium triple-filtered malt base, has debuted a zero-sugar option delivering the brand’s signature crisp flavor with 0 grams of sugar and just 95 calories per serving. Crafted with the popular tea, Lipton Hard Iced Tea Zero Sugar delivers a smooth, perfectly balanced taste with a clean, refreshing finish. Additionally, with 5% alcohol by volume (ABV), the product is as sessionable and satisfying as the original Hard Ice Tea lineup, according to the brand. A 12-count variety pack of 12-fluid-ounce cans in Half & Half, Raspberry, Lemon, and Peach flavors retails for a suggested $18.99. Lipton Hard Iced Tea Zero Sugar is available now at select retailers nationwide, with broader distribution rolling out in the coming months. Brewing company FIFCO USA produces Lipton Hard Ice Tea. https://www.liptonhardtea.com/; https://www.lipton.com/us/en/; https://www.fifcousa.com/

 Functional Ranch

Targeting consumers who are actively seeking out nutrients in their food, The Marzetti Co. describes Marzetti Protein Ranch as a first-to-category innovation that delivers the specialty food brand’s signature flavor while offering 3-4 grams of high-quality milk protein per serving and fewer calories than Marzetti’s other ranch offerings. Enabling consumers to enjoy a familiar favorite with added functional benefits, the brand’s latest line consists of Protein Ranch Dressing, which comes in a 13-ounce bottle; Protein Ranch Veggie Dip, available in a 12-ounce tub; and Protein Ranch Veggie Dip Snack Packs, conveniently sold as a 6-pack of 1.5-ounce cups. All of the products have a suggested retail price of around $5.49. As of this spring, Marzetti Protein Ranch dressing and dip are available at major grocery stores nationwide. https://www.marzetticompany.com/

AHEAD OF WHAT’S NEXT By Bridget Goldschmidt

Upholding the Bare Essentials A PAST OUTSTANDING INDEPENDENT ACHIE VES FURTHER SUCCESS WHILE REMAINING TRUE TO ITS SUSTAINABLE ROOTS.

Above: 2022 PG Outstanding Independent Nude Foods Market has since opened a Denver location and appeared on “Shark Tank.” Below: The sustainable grocery store operator is poised for growth.

ack in 2022, Progressive Grocer recognized Nude Foods Market among its Outstanding Independents that year. Noting that everything in the Boulder, Colo.-based store “comes in reusable, returnable glass jars and is local, organic or rescued,” PG wrote, “Nude Foods is going after traditional grocery store shoppers who want to grab and go and not sacrifice convenience, yet still shop according to their values.” Those were still early days for the independent grocer, however. “That recognition came at a moment when we had proven the concept, but were still early in scaling it,” notes Verity Noble, co-founder of Nude Foods Market. “Since then, we’ve grown revenue steadily, expanded our customer base and opened our second location, in Denver. We’ve also significantly refined the model – improving operations, expanding our prepared foods offering and increasing our network of local suppliers.” As Noble puts it: “One of the biggest evolutions has been shifting from ‘this is a cool idea’ to ‘this is a viable, repeatable grocery model.’ We’re seeing more customers use —Verity Noble, Nude Foods Market Nude as their primary grocery store, not just a supplement, which is key to long-term success.” The company has also built “a highly engaged customer community that has supported us not just through shopping, but through investment,” she adds. “Hundreds of our customers have invested in the company, which has been incredibly powerful.”

In the near term, that means continuing to strengthen our existing stores: improving in-stock reliability, expanding our product assortment, and increasing customer frequency and spend. We’re also investing in systems and processes that make the model more efficient and replicable – everything from operations to technology to supply chain.” Beyond that, she continues, “the goal is thoughtful expansion. We’re not trying to grow at all costs – we want to ensure that each new location is successful and that the model holds up in different markets.” Investment is key to the acceleration of that process, as it “gives us the resources to refine the model, invest in infrastructure and expand with intention,” Noble observes. Ultimately, she envisions that Nude Foods Market will be able “to build the first truly scalable, zero-waste grocery model and to make shopping without packaging waste the norm, not the exception.”

“One of the biggest evolutions has been shifting from ‘this is a cool idea’ to ‘this is a viable, repeatable grocery model.”

Swimming With the Sharks

Among Nude Foods Market’s recent wins was a successful appearance by Noble and co-founder Rachel Irons on the popular TV show “Shark Tank” this past March, which secured investment commitments from cast members Kevin O’Leary and Robert Herjavec. Describing the opportunity as “a huge inflection point for us,” Noble explained: “First, it gave us national visibility and credibility. It validated that this isn’t just a local experiment – it’s a concept that resonates at scale. Second, it drove a significant surge in interest – both from customers and investors. We saw a spike in traffic, engagement and investment through our community round almost immediately. But perhaps most importantly, it helped us sharpen our story. When you have to explain your business clearly and compellingly to millions of people in a few minutes, it forces a level of clarity that carries through into everything – marketing, operations and fundraising.”

‘Thoughtful Expansion’ Ahead

Going forward, according to Noble, “our focus is on proving that this model can scale sustainably – both environmentally and financially.

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Bridget Goldschmidt Managing Editor bgoldschmidt@ensembleiq.com

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