Regional Spotlight: Digital Grocery Transformation in Europe vs. North America

The grocery sector is experiencing a digital revolution, but the pace, priorities, and pathways of transformation differ markedly between Europe and North America. As digital grocery sales surge from single digits to 12–15% of total sales—and are projected to climb even higher—grocers on both continents are reimagining every aspect of their business. Yet, the nuances of consumer expectations, regulatory environments, technology adoption, and operational models are shaping distinct regional journeys. Drawing on Publicis Sapient’s extensive work with leading grocers in both markets, this spotlight explores what’s driving success, the unique challenges each region faces, and where future opportunities lie.

Consumer Expectations: Convergence and Contrast

North America:

Shoppers in the US and Canada have rapidly embraced online grocery, curbside pickup, and home delivery, especially since the pandemic. Convenience, speed, and breadth of assortment are paramount.
The North American consumer expects seamless movement between digital and physical channels—building a basket online, picking up curbside, or walking into a store for a frictionless checkout experience.
Loyalty programs are evolving into sophisticated, data-driven platforms, with grocers leveraging first-party data to deliver personalized offers and targeted promotions.

Europe:

European consumers are equally digitally savvy but often prioritize value, quality, and sustainability alongside convenience. The frequency of smaller, more frequent shopping trips is higher, especially in urban centers.
There is a strong emphasis on local sourcing, health, and wellness, with shoppers expecting transparency and authenticity from their grocers.
Unified experiences across channels are valued, but the expectation for personalized, value-driven engagement is particularly pronounced.

Regulatory Environments: Complexity and Opportunity

North America:

The regulatory landscape is relatively uniform, allowing for rapid scaling of digital initiatives across states and provinces.
Data privacy regulations are evolving, but grocers have more flexibility in leveraging customer data for personalization and retail media networks.

Europe:

The European Union’s stringent data privacy laws (such as GDPR) require grocers to be meticulous in how they collect, store, and use customer data.
Sustainability regulations are more advanced, with mandates around packaging, food waste, and supply chain transparency. This drives innovation in areas like circular business models and authentic sustainability claims.

Technology Adoption: Innovation at Different Speeds

North America:

North American grocers are leading in the deployment of large-scale, cloud-based platforms, microservices architectures, and advanced supply chain solutions.
Automation, micro-fulfillment centers, and AI-driven demand forecasting are being rapidly adopted to address the profitability challenge of digital grocery.
Retail media networks (RMNs) have become a major revenue stream, with grocers monetizing digital shelf space and customer data at scale.

Europe:

European grocers are equally innovative but often take a more measured, test-and-learn approach. There is a strong focus on integrating digital and physical experiences, with omnichannel fulfillment (BOPIS, curbside, delivery) as table stakes.
Experimentation with emerging technologies—such as generative AI for product content, digital shelf labels, and automated micro-fulfillment—is widespread, but rollouts are often more localized and tailored to specific markets.
Sustainability tech, such as real-time carbon tracking and food waste reduction platforms, is more prevalent.

Operational Models: Local Nuance, Global Ambition

North America:

The scale of North American grocers allows for rapid innovation and deployment of new models. Partnerships with third-party delivery providers, investment in dark stores, and the creation of connected store experiences are common.
Grocers are consolidating technology stacks, modernizing supply chains, and investing in associate experience to drive both efficiency and customer satisfaction.
The focus is on maximizing profitability through automation, data-driven assortment, and new revenue streams like RMNs.

Europe:

European grocers often operate in highly localized markets, requiring agility and adaptation to diverse consumer preferences and regulatory requirements.
There is a strong tradition of collaboration—both with local suppliers and across the value chain—to drive innovation in areas like health and wellness, sustainability, and personalized nutrition.
Operational models are evolving to support smaller, more frequent orders, with a focus on reducing food waste and supporting circular economies.

Unique Challenges and Innovations

Profitability: Both regions face the challenge of making digital grocery profitable. North America is investing heavily in automation and micro-fulfillment, while Europe is leveraging data and AI to optimize inventory and reduce waste.
Impulse and Discovery: The shift to digital reduces serendipitous discovery. Grocers are using AI-powered recommendations, digital samples, and targeted promotions to recreate the excitement of in-store discovery online.
Supply Chain Resilience: The pandemic exposed vulnerabilities in global supply chains. North American grocers are investing in control towers and vertical integration, while European grocers are focusing on local sourcing and agile, modular supply chains.
Sustainability: European grocers are leading in authentic sustainability initiatives, while North American grocers are increasingly prioritizing transparency and environmental responsibility.

Real-World Impact: Publicis Sapient in Action

In North America, we helped a major retailer build a retail media network that generated $100 million in annual media revenue, while supporting the rollout of micro-fulfillment centers and connected store experiences that blend digital and physical shopping.
In Europe, we enabled a top grocer to double its online order capacity in less than a week during the pandemic, and supported the integration of digital channels into in-store experiences, driving a tenfold increase in customer satisfaction and rapid growth in omnichannel sales.

The Path Forward: Where Opportunity Lies

Unified, Omnichannel Journeys: The future belongs to grocers who can seamlessly connect digital and physical, offering personalized, frictionless experiences at every touchpoint.
Data-Driven Personalization: Harnessing data—while respecting privacy—to deliver relevant offers, optimize operations, and drive loyalty will be a key differentiator.
Sustainable Innovation: As consumers and regulators demand more, grocers who lead on sustainability and transparency will build lasting trust and competitive advantage.
Agility and Test-and-Learn: The ability to rapidly pilot, iterate, and scale new models—whether in technology, fulfillment, or customer engagement—will separate leaders from laggards.

Why Publicis Sapient?

With deep expertise in grocery transformation and a proven track record across both Europe and North America, Publicis Sapient is uniquely positioned to help grocers navigate the complexities of digital disruption. Our SPEED framework—Strategy, Product, Experience, Engineering, and Data & AI—empowers grocery brands to deliver shopper-first experiences, drive operational excellence, and unlock new sources of growth.

Ready to transform your grocery business for the digital age? Let’s start the conversation.