What's Your Edge in Today's Competitive Omnichannel Grocery Space?

Instacart

Instacart

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What the data says about grocery's digital future, and what it means for independent grocers

To understand where independent and mid-market grocers actually stand, Grocery Dive surveyed 150+ grocery retail executives. The findings are both validating and clarifying. It showed grocers are investing, they're ambitious, and they're running into many of the same walls. More importantly, the research points to four technology macrotrends that separate grocers who are building durable competitive advantage from those who are falling further behind.

Read the full report here

Digital is your new front door

Consumers have embraced ecommerce as an additional way to shop — not a replacement for the in-store trip. That shift creates real opportunity, but it also raises the bar. A weak digital experience doesn't just lose a transaction; it erodes lifetime customer value.

The report reveals what grocers are prioritizing online and where the biggest gaps between ambition and execution still exist.

Scalability is the goal; complexity is the barrier

Nearly every grocer in the survey is planning to grow their digital investment over the next one to five years. But scaling ecommerce is harder than it looks, and the research surfaces the specific challenges that are slowing grocers down.

Instacart built Storefront Pro to remove that friction. The platform powers 380+ grocers' ecommerce sites, supporting banners of every size through onboarding and beyond.

First-party data is underworked

Most grocers recognize the value of the customer data they're already sitting on. Far fewer have the tools to act on it. The survey identifies personalization as the top tactic driving ecommerce ROI, and highlights the gap between grocers who can execute on that and those who can't yet.

Storefront Pro's built-in personalization and loyalty integrations give grocers the infrastructure to close that gap, turning customer behavior data into smarter merchandising, more relevant promotions, and stronger retention. Grocers on Storefront Pro see an average +5 pp lift in 90-day new user retention after launch.*

Retail media is the margin equation most grocers are missing

Retail media network adoption is high. However, the survey reveals a significant gap between grocers who are using their retail media network (RMN) to support sales and those who have unlocked it as a genuine revenue stream.

Storefront Pro grocers can tap into demand from 9,000+ brands already advertising on the Instacart platform (as of Q4 2025) — eliminating the need to build an advertiser network from scratch. On average, ad monetization covers 65%+ of monthly platform fees, turning retail media from a supplemental channel into a material margin recovery engine.

What it looks like when all four come together

The grocers best positioned for what's ahead aren't solving these challenges in isolation. They're addressing digital growth, operational scalability, data activation, and retail media monetization through a connected platform, instead of managing a patchwork of tools that don't talk to each other.

That's what Storefront Pro delivers: enterprise-grade ecommerce infrastructure that helps grocery retailers grow ecommerce profitably. Storefront Pro works behind the scenes, while the retailers keep control of their brand, their data, and their customer relationships. Grocers on Storefront Pro see an average +10 pp incremental year-on-year growth in online sales after launch.* Read the full report to see where grocers are finding success, and where the strategic opportunities are to act on now.


Read the full report here

Request a Storefront Pro demo here.

 

 

*Prior results do not guarantee future outcomes.

 

 

 

Results described are based on individual store and retailer performance and reflect specific time periods noted within each case study. Past performance is not indicative of future outcomes. Actual results may vary by store, region, and retailer. Edwards Food Giant/Cash Saver data reflects year-over-year comparison from January 1–February 18, 2025 to the same period in 2026. Friends' Marketplace data reflects peak season May–September 2025 compared to the same period the prior year. Davis Food & Drug data reflects the 12 weeks following July 2025 launch compared to the same prior-year period. Broulim's data reflects performance following the July 2025 launch compared to the same prior-year period.

 

Cutting tomatoes on a cutting board after grocery delivery.
Instacart

Instacart

Author

Instacart is the leading grocery technology company in North America, partnering with more than 2,200 national, regional, and local retail banners to deliver from nearly 100,000 stores across more than 15,000 cities in North America. To read more Instacart posts, you can browse the company blog or search by keyword using the search bar at the top of the page.