Grocery retail in North America is undergoing a significant transformation as spending moves from traditional supermarkets and hypermarkets to more convenience-oriented and value-based channels.
These include e-commerce, drive-through, click-and-collect, and discount chains.
“Meal occasions are blurring, and we can see that shift in terms of spend,” said Michelle Evans, Euromonitor International’s Global Lead of Retail and Digital Consumer Insights, during NRF 2025: Retail’s Big Show.
She highlighted a 5% growth forecast for e-commerce grocery by 2025, surpassing the 2.7% growth projected for food service and far outpacing the grocery sector’s overall 1% growth rate.
Walmart’s strategic use of its extensive store network as distribution and fulfilment hubs has enabled the retailer to dominate in edible grocery items, increasing its market share by 5.9% since 2022.
“Walmart has made investments in its supply chain, gaining traction in weekly shopping categories like dairy, processed meats, seafood, and soups,” Evans noted.
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By GlobalDataAmazon and Walmart remain key players in online grocery. However, their successes differ by category. For non-edible products, Amazon maintains dominance, driven by Prime and subscription services.
Conversely, Walmart leads in edible items, particularly non-perishable goods, where it has grown its share by 7.8% since 2022.
Values begin to rival price in consumer choices
While affordability continues to drive grocery purchases, the importance of personal values is growing. “The idea of finding a bargain is still the top shopping motivation, but it is on the decline,” Evans explained.
Research by Euromonitor revealed that 30% of digital consumers prioritise buying from brands aligned with their personal values, while 27% actively boycott those that conflict with their beliefs. This trend signals a shift towards value-driven purchasing, even as shoppers remain cost-conscious.
Evans also noted that digitalisation is reshaping how consumers shop. With 58% of global shoppers browsing for food online, retailers must cater to increasingly complex consumer journeys.
“The challenge is providing that level of convenience for consumers across a variety of platforms,” she said.
Retailers adapt through innovation
As consumer behaviour evolves, retailers are exploring innovative approaches to remain competitive. Stores are no longer just places to shop but are increasingly doubling as discovery and distribution centres.
This shift allows retailers to meet customers wherever they are, whether online or in local neighbourhoods.
“Tech will continue to be integral to growth both online and offline,” Evans said, highlighting the need for sophisticated distribution strategies. Retailers are also diversifying revenue streams by embracing retail media networks, enabling them to monetise new audiences effectively.
The grocery sector’s evolution underscores the growing importance of balancing convenience, values, and affordability while leveraging technology to meet consumer expectations.
As Evans concluded, “Shopping expectations continue to evolve and elevate, requiring grocers to innovate constantly.”
