What you need to know about the event and the evolving digital grocery landscape.
A few weeks ago, The JW Marriott Marco Island transformed into a hub for industry leaders to collaborate, innovate, and propel the food sector toward a sustainable and dynamic future.
The FMI Midwinter Executive Conference 2025 once again delivered a high-impact gathering of grocery industry leaders, innovators, and decision-makers. This exclusive event brought together key stakeholders to address the evolving landscape of grocery retail and discuss strategies for navigating the industry’s biggest challenges and opportunities.
This year’s conference underscored the importance of agility, collaboration, and technology-driven solutions, from shifting consumer behaviors to the growing need for digital integration.
It’s impossible to account for everything that happened. Keep reading to see our five key takeaways from this great event.
Takeaway #1: Grocers Are Fighting to Win Back Shopping Trips
One of the most pressing concerns for retailers is the loss of market share across different trip types including quick trips, pantry stocking, fill-ins, and special-purpose visits.
While interest rates are trending down, groceries, medicine, and other bare essentials are still eating up budgets. Store brand sales increased nearly 4% to $271 billion in 2024. This means brand loyalty is non-existent and shoppers are scrambling to wherever they can get the best deals.
As retailers tooth and claw for every disposable cent, grocery retailers must also be prepared to adjust to technological innovations. However, the data suggests that consumers still strongly prefer grocery stores for holiday shopping. This indicates a major opportunity for grocers to double down on occasion-based shopping strategies with compelling digital promotions, in-store holistic experiences, and product assortments tailored to seasonal and special occasions.
Takeaway #2: Grocer-CPG Collaboration is a Must
Today’s shoppers are more demanding, more savvy and more cost-conscious than ever before. Finding ways to partner up with CPGs in-store can bring ideas to life that reach a broad span of shopper demographics.
The pandemic disrupted supply chains and product availability, and many grocers are still struggling to get the right product mix in place. The solution? Stronger collaboration between grocers and CPGs.
Almost 90% of grocery transactions still happen in-store, with eCommerce and delivery accounting for just 10%. This stark divide presents a huge opportunity for grocery retailers to leverage digital tools to engage customers more effectively—both where they are and before they even step into their preferred store. Did someone say Adsta opportunities?
Both sides must work together more effectively to ensure product availability, optimize assortments, and deliver a seamless shopping experience. Transparency and data-sharing will play a pivotal role in this effort.
Takeaway #3: Collect & Use Data while Being AI Ready
Data was a dominant theme at the event, with discussions centered around the growing expectation for marketing investments to demonstrate direct sales impact.
Brands are more willing to invest in retail media, but only if they see measurable returns. This means retailers must refine their digital tracking and reporting capabilities to capture campaign effectiveness.
Additionally, while AI remains a buzzword, the consensus among retailers is clear: AI is only as good as the data feeding it.
For retailers, AI enhances forecasting accuracy and enables swift adaptation to market shifts. By leveraging data-driven decision-making, retailers improve operational efficiency, automate routine tasks, and optimize resource allocation, resulting in significant cost savings. AI has also revolutionized marketing, driving higher ROI through hyper-targeted campaigns.
But. before AI can drive meaningful efficiencies, retailers must ensure their data is well-structured, actionable, and integrated across channels.
Takeaway #4: The Basics Still Deliver Best
The pandemic fast-tracked innovation, driving rapid adoption of new technologies, fulfillment models, and digital touchpoints. While these advancements have fueled growth, brands still face ongoing challenges in staying competitive amid shifting consumer expectations.
Now, many retailers are refocusing on the fundamentals of retail success like product availability, exceptional customer service, and a seamless integration of in-store and digital experiences.
So where should you focus in 2025? The key lies in understanding evolving shopping habits and how they impact your brand. While innovation remains essential, the most successful retailers are those who master the basics and build from there.
Takeaway #5: Digital Alignment is Critical for Success
Our discussions with retailers during the event highlighted a common challenge: juggling multiple digital partners while ensuring a seamless user experience.
The most successful grocers now offer a range of digital solutions, but simply having digital tools is not enough. The key is integration. Ensuring that digital offerings work cohesively and deliver a unified customer experience.
Shoppers should feel like they are engaging with a retailer’s brand, not a disjointed collection of third-party tools. Many grocers are actively seeking new partnerships and collaborations to solve this challenge and create an enjoyable and simple shopping journey.
The Key to Winning Back Shoppers
Despite the challenges, digital solutions present a strong opportunity to recapture lost shopper engagement. To reclaim market share from non-grocery and larger retailers, regional grocers need a solution that strengthens customer retention while equipping their marketing teams to effectively highlight their unique advantages.
The future of grocery retail will be shaped by:
- An omnichannel approach to the shopper
- Dynamic, personalized digital circulars
- Tailored product recommendations
- Integrated meal planning tools
By leveraging CPG partnerships and strategic digital investments, grocers can create an engaging, shopper-centric experience that drives loyalty and trip frequency.
Despite ongoing challenges, the atmosphere at FMI Midwinter 2025 was overwhelmingly optimistic. Attendees left feeling energized, inspired, and eager to embrace the next phase of retail transformation.
At Webstop, we know that effective digital marketing isn’t just about driving traffic—it’s about creating meaningful connections that drive real results.
Looking to elevate your digital strategy and engage shoppers in a competitive market? Contact Webstop today to see how we can help you stay ahead.