Regional Realities: How Digital Grocery Transformation Differs Across North America, Europe, and APAC

The global grocery sector is in the midst of a digital revolution, but the pace, priorities, and consumer expectations for transformation are anything but uniform. As grocers and technology partners look to scale solutions internationally, understanding the regional nuances that shape digital grocery strategies is critical for success. Here, we explore how digital grocery transformation unfolds differently across North America, Europe, and Asia-Pacific (APAC)—highlighting unique challenges, innovations, and actionable recommendations for grocers operating or expanding internationally.

North America: The Rise of Click-and-Collect and Omnichannel Agility

In North America, the digital grocery landscape has been defined by the rapid adoption of click-and-collect (BOPIS) and curbside pickup. The COVID-19 pandemic accelerated online grocery sales from a modest 2-3% to 12-15% of total sales, compressing years of digital transformation into months. North American consumers, accustomed to the convenience of driving and larger basket sizes, have embraced click-and-collect as a preferred fulfillment model. This approach offers a balance between digital convenience and physical immediacy, while helping grocers manage last-mile costs.

Key Innovations and Case Studies:

Walmart Canada’s Fast Lane: By integrating scan-and-go technology within the My Walmart app, Walmart Canada enabled frictionless checkout and reduced in-store congestion, supporting both in-store and omnichannel fulfillment.
Loblaw’s PC Express: As the first Canadian grocer to offer click-and-collect, Loblaw built a scalable e-commerce platform and branded pickup lockers, making grocery pickup accessible to 75% of Canadians within 10 minutes of a site.

Operational Priorities:

Real-time inventory visibility and AI-driven demand forecasting are essential to minimize costly substitutions and ensure order accuracy.
Micro-fulfillment centers and dark stores are being deployed to automate picking and packing, increasing efficiency and supporting same-day fulfillment.
Unified commerce platforms enable consistent experiences across online, in-store, and mobile channels.

Regulatory and Consumer Considerations:

North American markets are characterized by less stringent delivery regulations and a strong focus on customer experience and loyalty programs.
Consumers expect seamless transitions between digital and physical touchpoints, with personalized offers and flexible fulfillment options now considered table stakes.

Europe: Home Delivery Dominance and Urban Innovation

Europe’s grocery sector, particularly in urban centers, has long favored home delivery. Dense populations, smaller basket sizes, and established delivery networks have made home delivery the norm, even before the pandemic. The crisis, however, drove further innovation in both delivery and click-and-collect, with grocers integrating appointment booking and virtual queueing to manage store traffic and enhance efficiency.

Key Innovations and Case Studies:

Major UK Grocer’s Digital Surge: With support from Publicis Sapient, a leading UK grocer doubled its online order capacity in less than a week, scaling to nearly 1 million online requests and 1.2 million delivery slots at the pandemic’s peak.
French and UK E-Grocers: Research reveals that European consumers prioritize perfect orders, freshness, and a seamless delivery or pickup experience. Grocers are investing in robust available-to-promise (ATP) systems and frequent inventory refreshes to meet these expectations.

Operational Priorities:

Guaranteed delivery slots—sometimes at a premium—offer certainty in uncertain times and create new revenue streams.
AI-powered demand forecasting and real-time inventory management are critical to reducing waste and ensuring product availability.
Returns optimization and in-store drop-offs help control costs and improve customer satisfaction.

Regulatory and Consumer Considerations:

European markets often face stricter regulations around delivery, labor, and data privacy, requiring grocers to adapt fulfillment models accordingly.
Urban consumers expect rapid, reliable delivery and are less tolerant of substitutions or delays. Shelf life and freshness are top priorities, driving investments in quality assurance and supply chain transparency.

APAC: Mobile-First, Hyperlocal Fulfillment and Super-App Ecosystems

Asia-Pacific is leapfrogging traditional grocery models with mobile-first, hyperlocal fulfillment and the rise of super-apps. In many APAC markets, consumers are digital natives, and mobile devices are the primary gateway to grocery shopping. The region’s dense urban environments and high smartphone penetration have fueled the growth of rapid, hyperlocal delivery services—often orchestrated through super-apps that integrate grocery, payments, and other daily services.

Key Innovations and Case Studies:

Mobile-First Strategies: APAC grocers leverage mobile apps for everything from ordering to delivery tracking, with AI-driven demand planning tools enabling rapid response to shifting needs.
Super-App Integration: Retailers partner with or build super-apps to offer seamless, end-to-end experiences, from product discovery to payment and fulfillment.

Operational Priorities:

Hyperlocal micro-fulfillment centers enable same-day or even one-hour delivery, meeting the region’s high expectations for speed and convenience.
AI and machine learning are used extensively for demand forecasting, inventory optimization, and personalized engagement.
Flexible fulfillment networks and partnerships with third-party providers allow grocers to scale capacity dynamically.

Regulatory and Consumer Considerations:

APAC markets are highly diverse, with varying regulatory environments and consumer behaviors. Localized assortments and culturally relevant promotions are essential.
Consumers expect mobile-first, frictionless experiences, with loyalty often driven by convenience, speed, and digital engagement rather than traditional programs.

Actionable Recommendations for International Grocers

Localize Your Strategy: One-size-fits-all solutions rarely succeed. Tailor digital grocery offerings to local consumer behaviors, regulatory requirements, and fulfillment infrastructure.
Invest in Real-Time Data and AI: Unified inventory visibility, AI-driven demand forecasting, and personalized engagement are critical across all regions—but the implementation must reflect local realities.
Prioritize Omnichannel Fulfillment: Whether click-and-collect, home delivery, or hyperlocal mobile fulfillment, offer flexible options that align with regional preferences and operational constraints.
Modernize Supply Chains: Break down silos, integrate data, and automate wherever possible to build resilience and agility in the face of demand surges and supply chain disruptions.
Focus on Customer-Centric Innovation: Use data to anticipate needs, personalize experiences, and build lasting loyalty—whether through digital discovery, seamless returns, or frictionless in-store enhancements.

The Path Forward

Digital grocery transformation is a global imperative, but its success depends on understanding and embracing regional realities. Grocers who invest in flexible, technology-enabled operations and adapt to local consumer expectations will not only weather future disruptions—they will lead the next era of grocery retail. Publicis Sapient stands ready to help grocers unlock new sources of value, build lasting customer relationships, and achieve sustainable growth in a rapidly evolving landscape.

Ready to shape the future of grocery in your region? Connect with Publicis Sapient to turn insights into action and lead your business into a new era of digital excellence.