Digitally Enabled Grocery: Meeting the Unique Challenges of Supermarket Transformation

The grocery sector is undergoing a seismic shift. Once defined by routine, in-person shopping and razor-thin margins, today’s supermarkets are at the epicenter of digital disruption. The rise of online grocery, click-and-collect, and evolving consumer expectations have fundamentally reshaped the industry. As digital channels now account for a significant and growing share of grocery sales, grocers face a new imperative: transform every aspect of their business to thrive in a digital-first world.

Grocery retail is unlike any other sector. Its operational and customer experience challenges are distinct:

• Perishable, Fast-Moving Inventory: Grocers manage thousands of SKUs, many of which are fresh and highly perishable. This demands real-time inventory visibility and rapid, accurate fulfillment.
• High-Frequency, Low-Margin Transactions: Shoppers visit frequently, but margins are slim, making operational efficiency and profitability paramount.
• Complex Fulfillment and Last-Mile Logistics: Online grocery orders require precise picking, packing, and delivery—often with narrow time windows and high customer expectations.
• Dynamic, Localized Assortments: Each store may carry a unique assortment, complicating digital merchandising and inventory management.
• Seamless Omnichannel Experiences: Customers expect to move fluidly between online and in-store, with consistent pricing, promotions, and loyalty benefits.

The COVID-19 pandemic compressed years of digital transformation into months. Grocers rapidly scaled online ordering, curbside pickup, and home delivery. Yet, as digital sales surged, so did the operational and profitability challenges:

• E-commerce Profitability: Online grocery is less profitable than brick-and-mortar due to higher fulfillment and delivery costs. Grocers are investing in automation, micro-fulfillment centers, and data-driven route optimization to close the gap.
• Inventory Accuracy and Availability: Real-time inventory management is critical to avoid costly substitutions and out-of-stocks. AI and machine learning are being deployed to forecast demand, optimize replenishment, and ensure the right products are available at the right time.
• Customer Engagement and Discovery: The digital shelf can limit serendipitous discovery and impulse purchases. Grocers are leveraging data and AI to personalize recommendations, offer digital samples, and recreate the excitement of in-store discovery online.

Success in grocery’s digital era requires a holistic, omnichannel approach:

• Unified Commerce Platforms: Modern, API-driven platforms enable grocers to manage inventory, pricing, and promotions across all channels, providing a consistent experience whether customers shop online, in-store, or via mobile.
• Click-and-Collect and Curbside Pickup: These fulfillment models have become table stakes, offering convenience while helping grocers manage last-mile costs. Leading grocers are optimizing store layouts and workflows to streamline order picking and handoff.
• Personalized Engagement: Customer data platforms unify shopper profiles, enabling targeted offers, personalized communications, and loyalty programs that reward customers wherever they shop.
• Digital In-Store Experiences: Shoppers expect digital amenities in-store, from contactless payment and self-checkout to real-time inventory information and personalized promotions delivered via mobile apps.

Publicis Sapient has partnered with leading grocers worldwide to address these unique challenges and deliver measurable results:

• Walmart Canada: Publicis Sapient helped design and launch the Urban Supercentre Concept, featuring Fast Lane—a mobile app-enabled solution that allows customers to scan items as they shop and skip the checkout line. This frictionless checkout experience, integrated with the My Walmart app, bridges the gap between physical and digital, offering local offers, immediate fulfillment, and a seamless journey. The result: increased customer satisfaction, higher conversion rates, and reduced operational bottlenecks.
• Loblaw: As the first Canadian grocer to offer click-and-collect, Loblaw partnered with Publicis Sapient to build a scalable e-commerce platform and foster a culture of continuous innovation. Initiatives like PC Express online grocery shopping and branded pickup lockers have set the standard for grocery pickup and delivery, with 75% of Canadians now within 10 minutes of a pickup site.
• Top Global Retailers: Publicis Sapient has enabled international grocery leaders to scale online grocery platforms, optimize supply chain operations, and integrate digital channels into in-store experiences. Notable outcomes include $1B annual revenue from general merchandising, $500M from international grocery e-commerce, and a 35% improvement in order picking rates.
• Carrefour: Through a holistic digital transformation, Carrefour unified its digital assets, accelerated e-commerce growth, and achieved a tenfold increase in customer satisfaction. Agile, cross-functional teams now deliver enhancements daily, ensuring the business can rapidly adapt to changing market dynamics.

Grocery’s digital transformation is not a one-time project, but an ongoing journey. The winners will be those who:

• Break down silos between digital, store, and supply chain teams to deliver unified experiences.
• Invest in modern, flexible technology that enables rapid innovation and adaptation.
• Leverage data and AI to personalize engagement, optimize operations, and drive profitability.
• Continuously test, learn, and evolve to meet changing customer needs and market dynamics.

With decades of experience in digital business transformation and a proven track record in grocery, Publicis Sapient delivers end-to-end solutions that connect every part of the grocery ecosystem. From supply chain optimization and point-of-sale modernization to journey reinvention and data-driven personalization, we help grocers anticipate shopper needs, adapt experiences, and drive sustainable growth.

Ready to transform your grocery business for the digital-first era? Connect with Publicis Sapient to discover how our connected store solutions can help you meet the demands of today’s—and tomorrow’s—grocery shopper.

Relevant Links

• Creating Walmart Canada’s Urban Supercentre Concept Store
• Omnichannel Fulfillment in Urban Retail: From Click-and-Collect to Micro-Fulfillment Centers
• La transformación digital del retail urbano: Innovación y eficiencia para el supermercado moderno en América Latina (LATAM)
• Creating Walmart Canada’s Urban Supercentre Concept Store
• La transformation du retail urbain en Europe : L’innovation digitale au service de l’expérience citadine (Europe)