Grocery retailers shift focus to digital convenience and data intelligence

The global grocery retail sector is undergoing a strategic shift as companies move beyond physical store footprints to focus on digital convenience and data-driven customer relationships.

In the United States, Walmart is leveraging its grocery segment—which accounts for approximately 60% of its retail business—to drive customer loyalty. Through its Walmart Data Ventures, the company is developing the Scintilla commerce intelligence platform. This AI-driven system aims to connect customer behavior with store-level information to assist suppliers with real-time replenishment and business insights.

In South Africa, the competitive landscape is similarly evolving. SPAR, which operates roughly 1,700 stores, faces challenges as traditional local convenience is disrupted by digital delivery services. Competitors like Shoprite have seen significant growth through services such as Checkers Sixty60, which utilizes existing stores as fulfillment hubs. Meanwhile, retailers like Pick n Pay are integrating AI shopping assistants to compete in the digital space.