Grocery retail in transition – challenges and opportunities

Technological advances and digitalisation

The use of AI and automation increased markedly during the year. Smart stores and advanced self-service solutions have become increasingly common, improving the customer experience and making operations more efficient. For brands, this is an opportunity to work with retailers to optimise the supply chain and offer more personalised services. In the US, there are now AI-powered smart shopping trolleys with screens. The trolleys are fitted with interactive screens and sensors that display product information and current offers, guide shoppers to products in the store and keep a running total of the customer’s purchases. They also have built-in scales for weighing fresh produce and payment terminals for paying directly. Going forward, their main use is predicted to be helping shoppers make their grocery basket as cheap as possible – which brings us to the next trend.

Changing consumer behaviour

Consumers are becoming increasingly price-sensitive as a result of higher living costs and price rises in grocery retail. This is driving consumers to choose stores and brands on price rather than other factors. Price is decisive, but it’s not the only thing that counts. Brands therefore need to get even better at communicating what makes them unique and worth their price. Balancing value for money with relevant added value and clear communication about product benefits – such as sustainability, health benefits or better quality – therefore becomes central. Understanding your consumer is becoming ever more important, and brands must invest in data and analytics to know when and how their products should be activated to attract the right customers. Physical and digital coupons, apps and loyalty programmes that give customers targeted discounts at the right moment are becoming an important part of the strategy.

Market development

Despite earlier economic challenges, grocery retail has shown signs of recovery. In December 2024, sales rose by 3.0% compared with the same month the previous year, according to Svensk Dagligvaruhandel. At the same time, there is still uncertainty about how continued inflation will affect purchasing behaviour going forward. If food prices keep rising, we may see even more people switching to discount alternatives, choosing private labels or stepping up their hunt for discounts and offers. On the other hand, if inflation eases and household finances improve thanks to lower interest rates and other factors, consumers may have room to return to more quality-driven choices.

Outlook

As we enter 2025, trends such as continued digitalisation, a greater focus on sustainability and intensified competition, driven mainly by price rises, are expected to shape the market. By proactively adapting their strategy and offering, brands can not only meet these challenges but also take advantage of the opportunities that arise.

At Clearon, we are ready to support brands in this dynamic environment with innovative solutions that combine proven effect with digital advances. Our research shows that a hybrid model integrating physical coupons with digital campaigns significantly increases redemption and strengthens the brand message. With our 360-degree solution, we can measure precisely how campaigns affect both direct sales and long-term loyalty. Digital coupons act as dynamic measuring points that track the entire customer journey, providing unique insights into how offers influence brand perception. This makes it possible to create tailored campaigns that both drive sales and strengthen the brand’s core values.

You’re welcome to get in touch at sales@clearon.se