WINTER 2026 SUPERMARKETNEWS.COM
TECHNOLOGY FMI meeting features AI pg. 8
PEOPLE The SN Power List pg. 19
CATEGORY MANAGEMENT Produce pg. 25
Inflation Indigestion Grocers are still concerned about high grocery prices pg. 11 RETAILER EXPECTATIONS SURVEY
Supermarket News
FROM THE EDITOR
WINTER 2026
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BILL WILSON SN SENIOR EDITOR
Bill Wilson is the senior editor at Supermarket News , covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.
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WINTER 2026
TABLE OF CONTENTS
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FEATURES 08 AI monopolizes conversations at FMI Midwinter Executive Conference The tech is now front and center, and it continues to evolve 19 Supermarket News 2026 Power List Here are the impact players in the grocery industry 23 Take SN’s Price Check Challenge Watch the videos and see if you can predict each item’s price COVER STORY 11 The SN 2026 Retailer Survey: Confidence slips Most retailers cite minimal impact from tariffs, but inflation concerns linger
INDUSTRY NEWS 04 Kroger names Walmart vet Greg Foran CEO Foran’s appointment caps a tumultuous period for the grocer 05 New Walmart CEO is not afraid to take risks, analyst says John Furner spent his first days as the retail giant’s leader walking stores, chain facilities and support offices 06 Report: Grocery shoppers predicted to spend more on food in 2026 as buying behavior evolves Increase in food spending also reflects a shift to more health-and-wellness products, Ibotta says
CATEGORY MANAGEMENT 25 PRODUCE How to keep produce in growth mode 28 DELI Supermarkets enhance their focus on foodservice 34 HEALTH & BEAUTY Igniting sales by attracting food shoppers IN EVERY ISSUE 2 Editor’s Letter 37 Checkout Amazon tests out big box retail
COVER IMAGE BY SHUTTERSTOCK
WINTER 2026 SUPERMARKETNEWS.COM 3
INDUSTRY NEWS | ANALYSIS
Kroger names Walmart vet Greg Foran CEO Foran’s appointment caps a tumultuous period for the grocer
unrelated to the business but “inconsistent with Kroger’s Policy on Business Ethics,” the grocer said at the time. The resignation ended McMullen’s nearly 50-year history with Kroger, where he rose through the ranks from stock clerk to chief executive. He had held the CEO post since 2014. Foran, who was born in New Zea - land, started his supermarket career at 17 as a shelf-stacker at Australia-based Woolworths. Just three years later, he was managing a supermarket, attaining increasingly more responsibility within the organization. Hiring a leader with Foran’s extensive technological expertise makes sense as Kroger looks to compete with the tech-en - abled grocery offerings of market leader Walmart. “Kroger is one of the most dynamic com - panies in retail,” Foran said in a statement. “The company is built on a strong founda - tion, supported by a talented leadership team, and caring associates who are dedi - cated to the customers and communities they serve. At this moment in Kroger’s journey, I can honestly say this is the best job on the planet. I look forward to working with the Board and the entire team to build on this momentum, continue raising the bar for customers, and deliver long-term value for customers, associates and shareholders.” Kroger said it will provide more details on the leadership transition during its earnings call on March 5. It said it is reaffirming its previously issued guidance for fiscal year 2025 and “remains committed to delivering sustainable value for shareholders.” Kroger operates more than 2,700 grocery stores; 32 food manufacturing facilities; 2,270 pharmacies; 1,700 fuel centers and employs more than 420,000 workers. —Heather Lalley
Greg Foran was named Kroger’s CEO and some believe he will stress the fundamentals.
KROGER named former Walmart exec - utive Greg Foran as its next CEO in early February, a little less than a year after the resignation of the grocer’s embattled leader. Foran spent six years leading Walmart U.S., a position he exited in 2019. While at the retail giant, he is credited with boosting the company’s digital capabilities by introducing online ordering and pickup. He most recently served as CEO of Air New Zealand, leading a digital transforma - tion there and steering the airline through the pandemic. “Greg is a highly respected operator who knows how to run large-scale retail businesses, strengthen store execution and lead high-performing teams,” Kroger Board Chairman Ron Sargent, who had served as the grocer’s interim CEO, said in a statement. “His leadership style, focus on the customer, commitment to associations and disciplined approach to execution are the perfect fit for Kroger. The Board is confident Greg is the right leader to guide Kroger into its next chapter.” The appointment caps a tumultuous period for the Cincinnati-based grocer, which operates banners including Ralphs,
King Soopers, Fred Meyer, Harris Teeter and more. In October 2022, Kroger announced plans to acquire rival grocer Albertsons for $24.6 billion. The following year, the com - panies announced a divestiture deal to sell 413 grocery stores and other assets to C&S Wholesale Grocers, in a bid to assuage fed - eral regulators over antitrust concerns. After much legal wrangling, Albertsons officially terminated the proposed merger in late 2024. Last March, Rodney McMullen resigned as Kroger’s CEO following a Board investigation into his personal conduct that was deemed
“His leadership style, focus on the customer, commitment to associations and disciplined approach to execution are the perfect fit for Kroger. The Board is confident Greg is the right leader to guide Kroger into its next chapter” –Ron Sargent
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INDUSTRY NEWS | ANALYSIS
New Walmart CEO is not afraid to take risks, analyst says John Furner spent his first days as the retail giant’s leader walking stores, chain facilities and support offices
According to Chen, Furner steps into a position of strength, and his background aligns with the retailer’s future. “You need a leader, but someone at the top also needs to motivate employees across the organization,” Chen said. “As you evolve the technology platform, you need both vision and execution.” Furner made several executive moves ahead of his first day as CEO. Among them, Latriece Watkins was named president and CEO of Sam’s Club U.S. Watkins previously served as executive vice president and chief merchandising officer for Walmart U.S. She began her career with Walmart as an intern in 1997 and has held a range of leadership roles at Sam’s Club and Walmart U.S. The company credited Watkins with reshaping the Walmart U.S. assortment strategy, driv - ing operational excellence and ensuring a consistent, trusted shopping experience. Chen said Walmart-owned warehouse retailer Sam’s Club sits in a strong position, largely due to former CEO Chris Nicholas’ focus on integrating technology while main - taining a merchant-led approach. David Guggina now serves as CEO of Walmart U.S., replacing Furner. Guggina spent the past eight years leading Walmart’s ecommerce, supply chain, innovation and automation efforts. He has not worked in stores or merchandising, but Chen said this reflects the type of calculated risk Furner is accustomed to taking. Furner also takes over the helm when Amazon is beating down the door to become a legitimate grocery leader, a title that has been held by Walmart for years with over 4,500 locations. Amazon announced it was closing all of its Amazon Fresh and Amazon Go locations in the U.S., and will instead focus more on its brick-and-mortar locations under the Whole Foods Market brand. The Seat - tle-based delivery company plans to open up 100 new Whole Foods locations over the next few years while focusing on its same- day fresh grocery delivery. —Bill Wilson
Walmart’s new CEO John Furner greets workers at a store.
WALMART’S NEW CEO John Furner could be called a retailer gunslinger. He’s not afraid to take risks, and as he works through his first weeks replacing former CEO Doug McMillon, he may be starting a tenure that takes more risks than anyone in the retailer’s history. In his first companywide memo as CEO in early February, Furner said he planned to spend his first few weeks in stores, supply chain facilities and support offices, where he will speak directly with workers. He also had one “simple ask” for all Walmart employees: “Tell me one thing that slows you down or makes it harder to do your job.” For a company that has spent the past two years investing heavily in technology to make associates’ jobs easier, Furner’s request may seem surprising. It reinforces the notion that the retailer will continue investing in innovation to improve operations. “You’re running a powerhouse, a dominant grocery player, which requires a ton of exe - cution and skill,” said Oliver Chen, who leads
retail, luxury and new platforms coverage at financial services firm Cowen Inc. “He’s been a leader throughout [former Walmart CEO] Doug McMillon’s tenure, meaning there’s been a ton of tech.” Furner served as president and CEO of Walmart U.S. before his promotion to lead Walmart Inc. Before that, he was president and CEO of Sam’s Club. He began his career with the Bentonville, Ark.-based company in 2006 as vice president and divisional mer - chandise manager of hardlines and seasonal at Sam’s Club. Chen described Furner as a leader who “has a lot of good humility as well as vision.” He added that Furner has a higher appe - tite for risk than McMillon, noting that risk-taking becomes necessary in a technol - ogy-driven environment. “In this age of change … you really need to do your best to anticipate innovation,” Chen said. “We’re hitting a new era of commerce where your ability to try things and fail properly will be important.”
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INDUSTRY NEWS | ANALYSIS
Ibotta projects consumers will spend 18% more on food and 12% more on pet categories.
REPORT Grocery shoppers predicted to spend more on food in 2026 as buying behavior evolves Increase in food spending also reflects a shift to more health-and-wellness products, Ibotta says
GROCERY SHOPPERS are expected to spend more on food in 2026 even as infla - tion’s direct impact continues to ease, though value remains the top priority, according to Ibotta’s third-annual State of the Spend report. Ibotta projects consumers will spend 18% more on food and 12% more on pet catego - ries, while spending in all other categories is expected to remain relatively flat this year. The increase in food spending also reflects a shift toward health-and-wellness products. The research, released in early February and based on responses from more than 5,000 grocery shoppers, shows consumers have cemented “defensive” strategies such as store switching and deal-seeking. These behaviors signal a strong preference for flexibility and price-first decision-making. More shoppers also say they no longer associate quality exclusively with branded CPG products, a trend that’s reflected in the
continued growth of private-label products. Fewer consumers are planning grocery trips in advance, and 68% of shoppers who discovered a new product through a promo - tion later purchased it. “The findings in our State of Spend report confirm a critical shift: Value isn’t just a trend, but the center of gravity for the American consumer,” said Chris Riedy, chief revenue officer at Ibotta Inc. “Years of
economic volatility have forged a new type of shopper, creating a massive opportunity for CPGs to redefine how they show up. To win in this new normal, brands can’t simply be guests in the retail ecosystem. They must move beyond traditional playbooks and use intelligent offers to meet shoppers where they are, whether on a planned trip or through spontaneous, deal-driven discovery.” —Bill Wilson
“The findings in our State of Spend report confirm a critical shift: Value isn’t just a trend , but the center of gravity for the American consumer.” –Chris Riedy
6 SUPERMARKETNEWS.COM WINTER 2026
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FEATURE | FMI MIDWINTER EXECUTIVE CONFERENCE
FMI ran a panel on agentic AI during its Midwinter Executive Conference in January.
AI monopolizes conversations at FMI Midwinter Executive Conference The tech is now front and center, and it continues to evolve
BY BILL WILSON
THE FMI MIDWINTER EXECUTIVE CON - FERENCE in Chula Vista, Calif., in late January was filled with some of the most important topics in the grocery industry— and AI dominated the conversation. On Jan. 23, a panel on AI agents closed out the educational portion of the conference and the message was clear: AI agents will dominate the grocery retail landscape by 2030 and if grocers are not ready for the tech they will lose sales. That session, along with sessions on food - service and hidden signals in the grocery industry, were covered by Supermarket News Senior Editor Bill Wilson and are sum - marized below. Agentic AI is coming fast and could make or break grocery sales By 2030, agentic AI will have the full atten - tion of shoppers, and grocery retailers must
ensure their data is ready to work with the technology. That was the primary message of the final keynote session at the FMI Midwinter Executive Conference in Chula Vista, Calif., which brought together grocery executives to discuss grocery technology and trends. Dan O’Connor, an executive fellow at Harvard Business School who works with AI and data companies, said some shoppers could have their own AI agents as early as 2028. Those agents would influence how people shop and which brands they choose. “One of the implications I think about a lot is that the world we’ve lived in for the last 20 years had lots of time between the data and the decision,” O’Connor said. “The competitiveness of agentic commerce is such that data and decisions are going to come together and happen instantaneously.” O’Connor said everyone who buys a new smartphone in the next few years will likely
have agentic AI built in. After answering a few questions, the AI agent will be able to make product recommendations and handle repetitive purchasing tasks. These task agents will operate based on rules set by consumers and retailers. “This is just like your health app on your iPhone,” O’Connor said. “We’re going to set it and forget it. These models run on trust and transparency.” That trust depends on the recency and credibility of a retailer’s content, as well as transparency about what products do well, what they do not do well, when they should be used and what other consumers say about them. The right product data will be essential. “Data is now your product,” O’Connor told retailers in attendance. One retailer already moving ahead with AI agents is Walmart. This past summer, the Bentonville, Ark.-based retailer rolled out a
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new framework for its AI tools consisting of four “super agents” that act as access points for customers, employees and external partners. “We want to reduce the cognitive burden for everyone, so we simplify things through these agents that help orchestrate and streamline the process,” said Desiree Gosby, senior vice president of enterprise tech strat - egy and emerging technology for Walmart Global Tech. Gosby spoke on a panel with O’Connor and Guy Peri, chief information and digital officer at McCormick & Company. Trust will also be critical. Consumers must trust the algorithm and their own agents to make purchases on their behalf. Peri said suppliers and retailers must pro - vide accurate, complete data to AI agents to build that trust. “In this agentic era, trust is elevated,” Peri said. “A lot is changing, but what’s not changing is the importance of brand trust and loyalty, retailer trust and loyalty and delivering quality every time.” O’Connor said retailers will need large language models, or LLMs, and knowledge graphs that LLMs can discover. Knowledge graphs function like databases, pulling together internal and external data. Retailers, he said, will need to learn how to promote and project those knowledge graphs so they connect effectively with LLMs. “You can’t control the LLM. You can con - trol the knowledge graph,” O’Connor said. “These two systems work together.” Retail foodservice is big, but grocers still have a lot to learn Foodservice is one area of grocery that has taken off over the past few years. Customers increasingly look to their local supermarkets for time-saving meals, with some choosing a grocery trip over a drive-through visit at a fast-food restaurant. Success in this sector is significant, but operating the right foodservice program requires a multistep approach. Michael Pursell, executive director of foodservice, deli and bakery at Associated Wholesale Grocers, has tracked the retail foodservice market for years. He offered an overview of where the industry is headed and what grocery retailers must focus on to succeed during a presentation at the FMI Midwinter Executive Conference.
Michael Pursell, right, executive director of foodservice, deli and bakery at Associated Wholesale Grocers, talked about retail foodservice at the FMI Midwinter Executive Conference.
One major issue, Pursell said, is that many retailers treat foodservice as a category instead of a business model that requires strategy, operations and consumer focus. “Foodservice operators are really good because of the complexity of the business,” Pursell said. “If you treat it as a category, it gets lost, and we expect labor and every - thing else to be absorbed.” Retailers also try to do too much in a single location, according to Pursell. They often implement too many formats or over - load operations by chasing and reacting to trends. The goal, he said, is to keep things simple and execute consistently. Labor is another critical factor. Food - service requires different skills related to timing, sequencing, food safety, equipment and production. Those demands differ from traditional grocery operations. Culinary talent is also difficult to find and retain, Pur - sell said. In ecommerce, retailers need websites that clearly support consumers who want hot food ready in 20 minutes. Pursell said few retailers currently follow that model. He added that grocers also miss opportu - nities to capitalize on specific events. The
NFL playoffs in late January was a major event for the NFL and watch parties. When Pursell reviewed 10 retailers’ websites, nine featured generic messaging. “It was about value, your New Year’s goals,” he said. Only one retailer took a targeted approach by offering $2 off pizzas and fully cooked enchiladas. “Being in tune with messaging by daypart and by menu is a big opportunity,” Pursell said. Social media is another necessity for a successful foodservice operation, yet many grocery retailers underuse it. Restaurants, by contrast, have leaned heavily into social media in recent years. So who does foodservice best? Pursell named three grocers, with Wegmans earn - ing top honors. “Wegmans takes the traditional grocery shopping experience and turns it into a very food-focused adventure,” Pursell said. He also cited a smaller Florida operator, Seat to Table, which shares similarities with Wegmans but has more of a restaurant-bar feel. Pursell additionally recognized Publix for its signature items, such as sandwiches.
WINTER 2026 SUPERMARKETNEWS.COM 9
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COVER STORY
Most retailers cite minimal impact from tariffs, but inflation concerns linger The SN 2026 Retailer Survey: Confidence slips
BY MARK HAMSTRA
Despite the challenges the industry faced from the tariffs—and the uncertainty that continues to surround them—retailers remained optimistic about the year ahead.
MORE THAN NINE IN 10 RETAILERS (93%) said tariffs impacted their profitability in 2025, according to the latest edition of the Supermarket News Retailer Expectations Survey. About three-fourths of retailer respon - dents (76%) said tariffs had a slight impact, while 17% said the impact was significant. Among the overall respondents, which included wholesalers, manufacturers and others in the industry, 33% said tariffs had a significant impact on profitability, reflecting the increased upstream costs of tariffs on manufacturers.
Almost all retailers took some actions to minimize the impact of tariffs, including 69% who said they passed some of their added costs on to their customers and 55% who said they worked with different suppliers to find lower-cost items. Forty-one percent said they sought more efficient operations to drive cost savings elsewhere to avoid raising prices for their customers. Despite the challenges the industry faced from the tariffs—and the uncertainty that continues to surround them—retailers remained optimistic about the year ahead, although their confidence has waned from
a year ago. More than three-fourths of retailers (76%) said they were confident about the strength of the economy, down from 82% who were confident in the economy heading to 2025. The percent who are extremely confident in the economy in 2026 was down to 17%, vs. 26% a year ago. About a quarter of retailers (24%) said they expected the U.S. to enter an economic recession in 2026, up seven percentage points from a year ago, when 17% said they expected a recession in 2025. About one- in-seven retailers (14%) said they believed
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COVER STORY
the U.S. economy is already in an economic recession (generally defined as two consec - utive quarters of decline in gross domestic product). Retailers’ outlook for their own sales growth remained strong, with 69% pre - dicting that their sales will grow in the first six months of 2026, including 24% who predicted sales growth of at least 5%. One-in- five retailer respondents (20%) predicted that their sales will decline in the coming months, and 10% predicted that their year-over-year sales would be flat. Competition outweighs inflation as biggest challenge Inflation declined as a concern for retailers, although 79% of retail respondents still cited cost increases as a challenge in the most recent survey. That compares with 93% who said inflation was a concern heading into 2025, when the new tariffs were still in the planning stages. Eighty-six percent of retailers cited com - petition from other retail channels as the biggest challenge they face in 2026, how - ever. That outpaced inflation/elevated costs, which was cited by 64% of retail respon - dents as their top obstacle in the year ahead. Asked to elaborate on the challenges they expect to face, one retailer specifically cited competition from online retailers, Walmart and dollar stores. Others cited ongoing inflation and concerns about the overall economy. “Inflation and economic fragility,” said one retailer. “Weakening economic conditions,” said another. Labor remains a challenge Labor also remained a significant challenge, cited by 43% of retail respondents, including one who noted the impact that rising labor costs are having on manufacturers. “Plants will continue to struggle with labor,” the retailer said. Another retailer cited the multifaceted challenge of managing the high costs of labor while at the same time keeping a lid on prices to attract consumers who have less spending power. “Employee wages/benefits are a constant challenge to work with,” the retailer said.
How do you anticipate your sales will perform in the first six months of 2026?
All respondents Food retailers
Increase 5-10% (or more)
22%
24%
Increase 1-5%
40%
45%
Stay the same
19%
10%
Decrease 1%-5%
13%
17%
Decrease 5-10%
5%
3%
Decrease 10% (or more)
–
2%
When thinking about my business in 2026, inflation is a major concern.
All respondents
Food retailers
43% Agree 35% Somewhat Agree 17% Neutral 5% Somewhat Disagree 0% Disagree
45% Agree 34% Somewhat Agree 17% Neutral 3% Somewhat Disagree 0% Disagree
Do you plan to grow store count in 2026?
Yes
55%
No
45%
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COVER STORY
Do you plan to increase hiring in 2026?
“The cost of everything is like a snowball going downhill—the snowball gets bigger and bigger.” Still, slightly more than half of retailers (52%) said they plan to increase hiring in 2026. That’s up from a year ago, when 41% said they planned to increase hiring in 2025. Most retailers (83%) said they did not experience contract issues with their employees in 2025, and 76% said they agreed to give pay raises to their workers. That included 10% who raised pay by more than 6% over the lifetime of the contract. Closely related to hiring, retailers are also optimistic about their opportunities for store expansion, with 55% saying they plan to grow their store count in 2026, up from only 29% who had planned store expansion in 2025. Pricing, private label top growth strategies Retailers again cited pricing, promotions and private-label offerings as key opportu - nities for driving sales growth in the year ahead as they strive to meet the demands
of consumers under financial pressure. More than half of retailers (55%) said they plan to increase their private-label assortments in 2026. “Our plan is to focus on less expensive store-brand items and use name-brand sale events as an entry sale,” said one retailer. Another retailer said they plan to use special endcap discounts “to hopefully get customers to take more time shopping throughout the store.” These price investments will come with cost-cutting initiatives as well as efforts to obtain more promotional dollars from suppli - ers, said another retailer. That retailer said they plan to “maximize efficiencies through the supply chain and through distribution,” as well as secur - ing “increased funding from our vendor partners.” Prepared foods remain a key driver of sales growth More than a third of retail respondents (38%) said they planned to expand their deli/pre - pared foods offering in 2026.
All respondents
Yes
35%
No
38%
27%
Not Sure
Food retailers
Yes
52%
No
31%
17%
Not Sure
How do you expect your deli/prepared foods menu or product mix to evolve in 2026? (Select all that apply.)
What steps will you take in 2026 to grow sales? (Select all that apply.)
66%
Introduce more grab-and-go or prepackaged items
All respondents
Food retailers
Increase digital marketing offers (including loyalty)
53%
75%
48%
Add healthier or specialty diet items (e.g., low-sodium, plant- based, gluten-free)
45%
68%
More in-store promotions
35%
64%
Expand fresh offerings
38%
45%
54%
Adjust pricing/discounting strategy
Offer more freshly prepared or made-to-order options
28%
50%
Introduce or expand online grocery/delivery
31%
30%
46%
Adjust private-label strategy
Adjust portion sizes or pricing to meet customer demand
36%
46%
Improve supply chain efficiencies
21%
19%
43%
Introduce or expand curbside pickup
Simplify or streamline menu selections
19%
43%
Expand health & wellness categories
24%
29%
Increase center store selection
14%
No major menu or product mix changes planned
12%
4%
Other
WINTER 2026 SUPERMARKETNEWS.COM 15
COVER STORY
Which categories do you expect to face the most challenges with in 2026? (Select all that apply.)
In addition, two thirds of retailers (66%) said they plan to introduce more grab-and-go or prepackaged prepared foods in 2026, and 38% said they plan to add more freshly pre - pared or made-to-order prepared foods. The deli/foodservice area was also the category that retailers said they expected to have the most success with in 2026, cited by 55% of retail respondents. Deli/foodser - vice edged out fresh produce (52%) as the category that retailers were most optimistic about, reflecting the ongoing success retailers have had with prepared foods during the past few years. Digital initiatives on tap for 2026 Retailers also said they expected to invest in a range of digital and technology initia - tives in 2026. These encompass ecommerce investments, as online grocery sales con - tinue to ramp up, and investments in other digital tools, including expanding the use of artificial intelligence across a wide range of functions. One retailer said they plan to invest in “more digital marketing, loyalty and fulfill - ment,” as well as making investments in “AI for marketing, logistics, ordering and train - ing employees.” A wholesaler predicted a “bloody com - petition” as the industry ramps up the deployment of AI solutions to increase efficiencies. Another retailer said they plan to change their third-party ecommerce delivery partner in 2026 as well as upgrade their ecommerce website. These digital investments come as some retailers reported tallying a higher percent - age of their sales from online grocery. Nearly half of retailers (45%) reported that online sales accounted for 6% or more of their total sales in 2025, including 24% of retailers who said online sales accounted for more than 10% of their total sales. Retailers were optimistic for continued growth in online sales in 2026, with two- thirds of retailers (66%) predicting that online sales would account for 6% or more of total sales in the year ahead. That included 28% who expected online sales to account for more than 10% of their total sales.
All respondents
Food retailers
38%
48%
Fresh meat
33%
44%
Center store grocery
General merchandise (including paper goods, cleaning supplies, etc.)
29%
37%
20%
30%
Fresh produce
13%
26%
Dairy
16%
19%
Frozen aisle
12%
15%
Deli-foodservice
20%
15%
Fresh bakery
11%
15%
Health & wellness/HBC
Non-alcoholic beverage (Energy drinks, soda, pre/probiotic drinks)
16%
22%
What retail channel(s) will be the biggest threat(s) to your business in 2026? (Select up to 3 choices.)
All respondents
Food retailers
46%
62%
Mass retailers (Walmart, Target, etc.)
Direct-to-consumer online channels (Amazon, etc.)
49%
55%
33%
45%
Warehouse clubs
34%
31%
Dollar stores
38%
28%
Online retailers
6%
7%
Natural retailers
1%
3%
Drugstores
9%
3%
Convenience stores
16 SUPERMARKETNEWS.COM WINTER 2026
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COVER STORY
What percentage of sales do you expect online grocery to contribute in 2026?
Do you plan to bolster your health & wellness positioning in 2026?
Food retailers
All respondents
Food retailers
Yes
59%
No
41%
20% 1-5% 30% 6-10% 21% More than 10% 29% Don’t offer online grocery
24% 1-5% 38% 6-10% 28% More than 10% 10% Don’t offer online grocery
Targeting growth in health and wellness In addition to prepared foods, private-label and digital initiatives, retailers are also eying growth in their health and wellness efforts in 2026, the survey found. Fifty-nine percent of retailers said they plan to boost their health and wellness positioning, about the same percentage as a year ago. Among those investing in driving increased sales of health and wellness cate - gories, 65% said they plan to grow or update their assortments, and 59% said they plan to introduce new products such as plant-based alternatives and CBD items. About four-in-10 retailers (41%) said they plan to use nutrition/ shelf tags to boost health and wellness sales. One new strategy that emerged in the most-recent survey was the use of a fee- or subscription-based wellness program, which was cited by 24% of retailers as an initiative to boost health and wellness sales. No retail - ers said they planned such programs on last year’s survey when asked for their 2025 plans in these categories. One retailer also commented that they planned to drive health and wellness sales by integrating health into their loyalty app, while another cited aggressive pricing as a tool to drive health and wellness category sales. The most recent survey also included some new questions about the impact of GLP-1 medications, which have soared in popularity as a weight-loss solution and are reportedly leading consumers to reduce their purchases of some grocery items. On the other hand, their popularity is also driving increased sales for retailers with pharmacies. More than half of retailer respondents (55%) said GLP-1 drugs have had an impact on their bottom line in the past year, including 7% who said the impact has been significant.
What are your plans for private-label in 2026?
All respondents
Food retailers
50% Add private-label offerings 5% Reduce private-label offerings 45% Stay the same
55% Add private-label offerings 10% Reduce private-label offerings 34% Stay the same
How much of an impact have GLP-1 drugs like Ozempic had on your bottom line and profitability in the past year?
All respondents
Food retailers
11% Significant impact 45% Slight impact 44% No impact
7% Significant impact 48% Slight impact 45% No impact
18 SUPERMARKETNEWS.COM WINTER 2026
FEATURE | SN POWER LIST
2026 POWER LIST Here are the impact players in the grocery industry
he led operations, merchandising and market - ing for more than 450 stores in the U.K. But it was Sinclair’s leadership at Sprouts during the early days of the pandemic that positioned the grocer for the growth it’s seeing today. With Americans more worried than ever about their health, the specialty grocer lev - eraged its focus on a curated selection of better-for-you products for a variety of spe - cific diets to drive rapid sales growth. At the same time, the chain seized on its customers’ sudden interest in e-commerce. Sinclair led a revamp of the chain’s website and forged partnerships with Instacart and DoorDash, as ecommerce sales continued to grow in double digits. – Heather Lalley Chris Rogers has not been Instacart’s head chief for a year yet and he already has the grocery delivery company pointed in a new direction. When he accepted the CEO position in mid- 2025, Rogers already had his eye on the big competitors, including Amazon and Walmart. Instacart’s last two earnings reports have featured double-digit profit gains. Key partnerships have also been galva - nized. In November, Kroger and Instacart announced they were adding new AI-driven features designed to make digital grocery trips faster and more personalized. One of the most visible additions for customers is Cart Assistant, an AI shopping tool from Instacart that uses conversational prompts to help users find recipes, build carts based on past purchases and plan meals more efficiently. The grocery delivery company runs the first retail media network to offer advertisers end-to-end capabilities directly on TikTok, an announcement that was also made late last year. —Bill Wilson New Instacart CEO Chris Rogers lifts the delivery company to a higher level
BY SN STAFF
Atty McGrath will steer Aldi’s fast-moving future Few grocery chains have cap - tured the cultural zeitgeist like
driving sales. That’s where Liz Roche comes in. Since the end of 2024, Roche has served as vice presi - dent of Media & Measurement for Albertsons Media Collective, the grocer’s retail media arm. At Albertsons, Roche is focused on trans - parent measurement products and advanced audience targeting with the singular goal of helping brands see their impact on shopper behavior. Roche helped launch Albertsons’ in-store digital display network in June during the Cannes Lions International Festival of Cre - ativity in France. The fleet of digital screens is designed to enhance customer engagement and also features advanced measurement capabilities for brands. Early this year, Albertsons Media Collec - tive debuted a measurement system designed to track the incremental sales impact of in-store advertising. The innovative system compares sales performance of products with in-store ads versus those in control stores without advertising. “For too long, in-store media has been mea - sured with tools that confuse correlation for impact,” Roche said in announcing the new tool. The in-store digital display network is expected to expand to 800 more stores this year. – Heather Lalley Grocery veteran Jack Sinclair drives innovation at Sprouts Farmers Market By the time Jack Sinclair became CEO of health-focused Sprouts Farmers Market in 2019, he’d already had a lengthy grocery career, one that included an eight-year stint as EVP of Grocery for Walmart. Sinclair also spent 14 years at Safeway in London, where
Batavia, Ill.-based Aldi, with its low prices, pri - vate-label finds and “Aisle of Shame” treasure hunt. Atty McGrath is steeped in that culture, after more than 23 years with the fast-growing grocer. McGrath began her career with the chain in 2003 as a district manager in suburban Mil - waukee, working her way up to president in 2021 and COO by early 2025. Before the year ended, McGrath was named CEO, taking the helm from Jason Hart, who was named group chief operating officer of Aldi South. McGrath will continue the growth focus driven by Hart for the past decade, a push that earned Aldi the title of fastest-growing gro - cery chain in America. By the end of 2025, the grocer had more than 2,600 stores nationwide and set a record by celebrating 18 store open - ings in one day. “I’m excited to build upon our momentum, expand our footprint and continue adapting to serve our customers,” McGrath said upon her promotion. Indeed, in early January, McGrath announced that Aldi would mark its 50th anniversary with plans to open 180 new stores across 31 states in 2026. Plus, the grocer said it plans to plant its flag in Colorado with a debut there in the next five years. – Heather Lalley Liz Roche is leading the way in retail media metrics Plenty of chains have jumped on the retail media bandwagon in recent years. But retail media programs are only as successful as their metrics. Retailers need to be able to show brands that their ad dollars are
UNFI makes it through a challenging 2025 behind the leadership of Sandy Douglas
Last year was one filled with crisis and dra - matic change for United Natural Foods Inc., and CEO Sandy Douglas navigated through both to keep the wholesaler’s momentum strong.
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TR h ig e ht Way Since 1939, Dietz & Watson has been doing things The Right Way. The Right Way means being transparent about what goes into our food. And what doesn’t. It’s cooking our meats down to their natural weight, so you pay for meat, not water. It means never cutting corners. Ever. It means all of our spices are blended by hand, not premixed like the other guys. It means cooking, not processing. It’s a commitment to quality that every single employee at Dietz & Watson upholds. Because if it’s not right for us, it’s not right for you. We’ve stuck by this tried-and-true philosophy since day one: doing it The Right Way, even if it’s the hard way.
(215) 831-9000 • (800) 333-1974 SALES@DIETZANDWATSON.COM • DIETZANDWATSON.COM DIETZ & WATSON INC. 5701 TACONY ST., PHILA., PA 19135
FEATURE | SN POWER LIST
In January, UNFI made the decision to realign its wholesale business into two areas: natural/organic and conventional grocery. The move was another step in the exe - cution of a plan to add value and improve efficiency and effectiveness for custom - ers and suppliers, according to Douglas. It empowers commercial teams to provide a more customized product and service-cen - tered experience. After a successful earnings report in March, UNFI was hit with a cyberattack in mid-June that delayed deliveries for custom - ers. Led by Douglas, the company was able to get back online quickly and it resulted in a more effective and secure IT approach. UNFI recently detailed an expanded multi - year strategy aimed at improving profitability and strengthening its position in a $90 billion market. The plan is designed to deliver shared growth for customers, suppliers, employees and shareholders. The focus is on improving service levels, reducing operating costs and boosting returns. —Bill Wilson Hispanic grocery store growth. The grocer opened its fifth Supermercado Nuestra Familia store in December and there are no signs of slowing. C&S Wholesale Grocers and SpartanNash also were involved in a major acquisition in 2025 that involved the Keene, N.H.-based C&S purchasing SpartanNash, based in Grand Rapids, Mich., for $1.77 billion. CEO Tony Sarsam led SpartanNash through both major milestones. The combined company now operates nearly 60 complementary distribution cen - ters serving nearly 10,000 retail locations. In addition, the acquisition includes the military commissary and exchange supply business of SpartanNash and its 200-plus unit network of corporately owned supermarkets. —Bill Wilson SpartanNash CEO Tony Sarsam leads Hispanic specialty store growth SpartanNash is the retailer to watch when it comes to
In July, Walmart rolled out a new frame - work for its artificial intelligence tools consisting of four “super agents” that act as access points for its customers, employees and outside partners. Each super agents incorpo - rate multiple AI agents that serve specific functions. Walmart updated its app in late 2025 to include several smart features, including an in-store savings tool that displays current promotions and deals, enhanced search functionality with real-time tracking and intelligent list-building that organizes items by store aisle. The retailer’s GenAI digital assistant, named Sparky, helps customers create personalized shopping lists tailored to their needs. The platform also offers AI-gen - erated product summaries that transform lengthy descriptions and customer reviews into concise, easy-to-digest audio clips. —Bill Wilson Matt Van Gilder brings family experience to NexChapter Sometimes, your career finds you early on. That’s the story for Matt Van Gilder, who worked his way up from bagger at this family’s VG Grocer, through the SpartanNash ranks to store manager, mar - keting specialist, operations manager and even Director of E-Commerce and Digital Experience. He held that role for six years, where he was responsible for overseeing the end- to-end digital experience, integrating web platforms, mobile applications, loyalty pro - grams, fulfillment operations, and marketing initiatives to maximize customer engagement and retention. Along with cross-functional team building, he spearheaded third-party marketplace expansion by successfully inte - grating platforms like Instacart, DoorDash, Uber Eats and more to expand customer reach. Now, after 20 years with SpartanNash, he’s the VP of Omnichannel Retail for Nex - Chapter, where he will lead omnichannel practice, delivering tech solutions for retailers and expanding customer loyalty. In the past, he’s authored several articles in Supermarket News . —Ally MacConchie
president of artificial intelligence accelera - tion, product and design. He took on the role in August of 2025, where he spearheads Walmart’s AI transformation and leads product management and design across all business units. Danker brings critical experience from his tenure as the chief product officer and head of online grocery at Instacart, a role he undertook during the pandemic when gro - cery delivery became essential overnight. After four years at the delivery pioneer, he developed expertise in integrating AI capa - bilities in the consumer-facing platform, essential knowledge that directly translates to the retail giant’s digital evolution. Before his time with Instacart, his career trajectory includes senior leadership roles at major tech companies. Danker was senior direct of product for Uber and head of product for Uber Eats, and held positions at Facebook, Shazam, BBC and Microsoft. —Ally MacConchie Forage is led by CEO and founder Ofek Lavian The goal of any good retail technology company is to make things more accessible to consumers, often by streamlining things for retailers on the back end. Forage does exactly that. Ofek Lavian is the CEO and founder of San Francisco-based Forage, a tech com - pany that builds payment infrastructure for government benefits. Founded in 2021, Forage helps merchants accept EBT and SNAP payments both in-store and online, allowing Americans to use their govern - ment benefits virtually, and enabling grocers to use their existing POS system to accept EBT and SNAP for in-person purchases. Prior to founding Forage, Ofek spent two years at Instacart as head of product and payments, growing his team tenfold and spearheading payments processing, fraud prevention, and order lifecycle manage - ment. He joined the company during the pandemic, Instacart’s peak growth years, and drove billions in profits allowing cus - tomers to pay with EBT/SNAP, PayPal, gift cards, prepaid cards, and more. Prior to that, he was the product man - ager of payments at Uber from 2016-2019, a consultant at Deloitte, and the co-founder and CEO of Campus Ink Apparel. —Ally MacConchie
Walmart is thriving in AI behind the work of Desiree Gosby Desiree Gosby, SVP of Enter -
Walmart’s Daniel Danker spearheads
prise Tech Strategy and Emerging Technology for Walmart Global Tech, has been instru - mental behind the retailer’s moves in the AI world.
the retailer’s AI transformation Daniel Danker is Walmart’s executive vice
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PRICE CHECK CHALLENGE
Take SN’s Price Check Challenge Watch each video and see if you can guess the correct price
EVERY WEEK Supermarket News Senior Editor Bill Wilson is out in the grocery market checking on prices. SN’s Price Check Challenge shows three products with a fictional price, and viewers need to decide if the actual price is higher or lower. Take a look at our last four Price Check Challenge videos and see how many you get right.
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CATEGORY MANAGEMENT | PRODUCE
How to keep produce in growth mode Retailers can engage shoppers by responding to the unique product preferences in each market
merchandising doesn’t enable products to survive the sales floor without rotation dis - cipline and product knowledge,” he said. “The difference between success and shrink often comes down to how well teams understand freshness, timing and shopper intent.” In response, Save Mart is “doubling down” on education and engagement for both store associates and shoppers, Vargas said. The retailer trains workers on product standards while offering guidance and suggestions for interacting with customers, he said. “That human connection matters more than ever,” Vargas said. “Produce stops being transactional and starts driving loyalty when associates can explain how to use a product, why it is featured or how it fits into a meal solution.” CHOICE IS A CHALLENGE It also is necessary to ensure the availability of the wide range of products that consum - ers seek year round while offering the items at the right price and quality, said Amy McClellan, executive vice president and chief commercial officer at SpartanNash Co., a Byron Center, Mich.-based wholesale food distributor and operator of nearly 200 gro - cery stores in 11 states under banners that include Family Fare, Martin’s Super Markets and D&W Fresh Market. That requires a proper balance and space allocation for seasonally relevant items, packaged selections and conventional com - modities, she said. “Produce has personality and space is often in high demand,” McClel - lan said, adding that SpartanNash uses shopper insights and consumer purchasing data to develop display and assortment strategies. Tracking shopper behavior is important as more consumers are experimenting with less common selections, such as dragon fruit, while exploring exotic fruits and using pro - duce to recreate popular restaurant cuisines at home, said David Sherrod, president and chief executive officer of the Millen, Ga.- based Southeast Produce Council. “Produce departments are bringing in more Asian veggies, tropical fruits and limit - ed-time and seasonal fruits and vegetables,” he said. “Consumers will be looking for such selections as meals move from foodservice to retail.” SpartanNash is prioritizing conve - nience to attract shoppers, which includes
BY RICHARD MITCHELL
Packaged produce is appealing to convenience-minded shoppers.
PRODUCE ACTIVITY IS RISING but the need for merchandising mettle remains. Fruit and vegetable unit sales were up about 3.4% and 0.3%, respectively, over the last year, reports Circana, a Chicago-based market research firm. Yet to sustain and increase shopper purchasing, retailers must meet the needs of sharper and more inten - tional customers who are balancing value, freshness and versatility, said Mike Vene - ziano, vice president of produce and floral at The Save Mart Companies, a Modesto, Calif.-based operator of approximately 200 Save Mart, Lucky and FoodMaxx stores throughout California and Western Nevada. That is important as consumers also are making fewer trips to stores and have more calculated buying decisions, he said. “Waste, price sensitivity and confidence in quality all factor heavily into what makes it into the basket,” Veneziano said. “Not all consumers trend the same, so telling a story to broad shoppers to help them make their choices is
an everyday balancing act for merchandis - ing teams.” Properly executing sales strategies is another critical challenge, said Andy Vargas, Save Mart senior category manager, fruits. “Produce is unforgiving and even great “THE DIFFERENCE BETWEEN SUCCESS AND SHRINK OFTEN COMES DOWN TO HOW WELL TEAMS UNDERSTAND FRESHNESS, TIMING AND SHOPPER INTENT.” Andy Vargas
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