In this 2025 US grocery recap, one thing is clear: US grocery retail continued to evolve rapidly in response to labor challenges, supply chain volatility, and shifts in shopper expectations. Grocers leaned into technology more than ever, driving operational resilience and laying the foundation for an even more dynamic 2026.
Over the past year, certain technologies have driven innovation forward, while others have proven their enduring value as reliable, long-term solutions.
One of the biggest technology surges in 2025 was the adoption of Electronic Shelf Labels (ESLs). While ESLs began gaining traction in the US in 2023, 2025 was the year they moved into mainstream deployment. Retailers are now embracing ESLs for more than just dynamic pricing. Using them to drive labor savings, reduce pricing errors, and respond faster to market shifts during inflation and supply chain inconsistencies. This technology’s proven ROI has made it a priority investment across formats.
“In 2025, ESLs shifted from pilot projects to enterprise conversations,” said Farrell McKenna, US President. “US Grocers now see them as a strategic tool to protect margins and stay agile when conditions change.”
Despite concerns early in the year about digital price tags and consumer perceptions, adoption continued to climb with major retailers scaling their implementations.
Self-checkout remained a key piece of the grocery front end in 2025. However, the conversation shifted from whether to implement it to how to optimize it. These units are now a standard part of the grocery experience, with hybrid checkout models blending staffed lanes, self-checkout kiosks, and assistive technologies designed to minimize errors and theft.
Industry data shows the US grocery self-checkouts market was valued at around $1.5 billion in 2025, driven by labor shortages and automation demand. Additionally, it is forecasted to continue strong growth through the next decade.
However, 2025 also revealed some tension around the technology. Several grocers experimented with refining or even removing self-checkout in select locations to improve customer experience and operational efficiency.
Shrink due to theft and fraud persisted in 2025, prompting investment in security technologies. From advanced produce recognition at self-checkout to improved physical and cyber protections. Grocers expanded their use of loss prevention tools, upgraded POS defenses, and invested heavily in monitoring and anti-skimming technologies to protect customer data.
Supply chain challenges continued to influence grocery operations in 2025. Though less volatile than in previous years, grocers doubled down on building agility. Local sourcing, agile forecasting, and regional distribution models helped retailers buffer against disruptions, a trend identified as essential in 2025 grocery strategy.
AI and advanced analytics also helped optimize inventory and logistics. By mid-year, many retailers were leveraging AI tools to improve forecasting accuracy and reduce stockouts, directly impacting supply chain stability.
After years of disruptions tied to tariffs and logistical bottlenecks, grocers have migrated toward local and nimble sourcing approaches, cutting lead times and improving on-shelf availability. These efforts helped smooth operations and reduce the risk of empty shelves and pricing chaos.
AI adoption in grocery was not just a buzzword. In 2025, 45% of grocery stores were using AI-powered inventory and checkout systems. A majority of chains were planning AI investments for supply chain optimization and personalized experiences.
From AI-assisted produce recognition and smart carts to dynamic pricing and real-time inventory sensing, technology transformed core operational areas throughout 2025.
Another 2025 theme was the rise of retail media: an ecosystem blending POS, ESLs, digital signage, e-commerce, and loyalty platforms. Grocers explored new ways to drive shopper engagement and unlock incremental revenue. Weaving digital touchpoints throughout the physical store.
Building on their success in 2025, ESLs will continue to proliferate in 2026. Extending beyond pricing to play a greater role in promotions, shopper engagement, and retail media activations.
With ESLs mainstreamed, digital signage embedded at the shelf edge will grow in importance. Brands will likely invest more ad dollars into these displays, and grocers will explore new models to monetize shelf-edge media and offset technology investments.
While adoption has been cautious due to shrink concerns, scan-and-go solutions are poised for meaningful pilots and rollouts in 2026. Reduced queue times and improved customer satisfaction could drive broader acceptance if security challenges are addressed.
“AI isn’t just a buzzword—it’s becoming a practical tool for grocers to optimize pricing, improve inventory management, and deliver personalized experiences.” Ed Sepelak, US VP of Sales, explains, “In 2026, the retailers who use AI thoughtfully will set themselves apart.”
AI will remain central to innovation, particularly around price optimization, supply chain management, and personalized offers. As grocers refine use cases, the true business impact of AI will become clearer, and likely more measurable, in 2026.
Expect a rise in in-store digital guidance tools, from QR-led recipe assistance to personalized shopping routes and digital avatars for independent grocers. These tools will help differentiate in-store experiences and deepen loyalty.
Grocers should stay alert for upcoming compliance requirements, particularly around FSMA food traceability. FSMA has seen timing shifts, but could be enforced in the next few years. Retailers should also monitor environmental regulations targeting carbon emissions in refrigeration. Especially in regions like the New York metro, as these may carry significant capital implications.
2025 was a year of transformation for US grocery. From ESL adoption and self-checkout innovation to improved supply chain resilience and AI integration. As we turn the page to 2026, grocers are well-positioned to build on that momentum, unlocking operational efficiency and deeper shopper engagement than ever before.
Avec technology now woven into the fabric of grocery operations, the journey ahead promises even greater change and opportunity.
