Kroger’s Q2 Reality Check, AI Shopping Assistants & The Changing Grocery Landscape

Hello GrocerTalk listeners,

We’re coming to you live from the Omni Talk podcast studio at NRF Retail’s Big Show Europe in Paris, where Chris Walton and I are spending the week recording interviews with retailers, brands and technology leaders from across the industry.

We’ll be sharing those conversations in real time across Omni Talk’s LinkedIn page, podcast channels and YouTube, so be sure to follow along. We’ll be doing it all again next week at Groceryshop.

In the meantime, there was plenty to discuss across global grocery retail, from Kroger’s latest results and the rise of AI-powered shopping assistants to Walgreens’ in-store media plans, Albertsons’ new executive chair and the technology behind the modern shelf edge.

Here’s what caught our attention.

Is Kroger Facing a Kroger Problem or a Supermarket Problem?

While many major retailers have recently reported sales growth and increased full-year guidance, Kroger’s latest results offered a different picture. The supermarket giant reported essentially flat second-quarter sales and lowered its 2026 same-store sales outlook to between 0.2% and 0.8%, down from its previous guidance of 1% to 2%.

Kroger did see strong growth in e-commerce, retail media and its Private Selection brand, but Chris and I discussed whether those gains are enough to offset the broader challenges facing the supermarket format. We also looked at pressure from Walmart and Amazon, the growing importance of convenience and price transparency, and whether Kroger’s many banners may be diluting its brand strength. With Kroger’s strategic update coming October 20, the focus now turns to how the retailer can get back to basics and drive stronger store, pricing and loyalty performance.

AI Shopping Assistants Are Entering the Grocery Journey

Instacart and Shipt have both launched AI-powered shopping assistants designed to make grocery shopping easier and more personalized. We discussed Instacart’s Clementine assistant, which can recommend products based on a shopper’s budget, preferences, purchase history and real-time store availability.

The bigger question is what this means for retailers. Chris raised the possibility of AI comparing shopping baskets across multiple grocers and optimizing an order around price, convenience and fulfillment. I questioned whether the delivery economics of a multi-retailer basket could make that practical. Either way, grocers will need to think carefully about marketplace partnerships, pricing, loyalty and how AI fits into their own digital experiences.

Five Insightful Minutes With Vestcom

For this week’s Five Insightful Minutes, Chris and I were joined by Kim Schneider of Vestcom to discuss how grocers can maximize their investment in shelf-edge technologies.

Kim explained why Vestcom is much more than a paper shelf-tag company. Its StoreLink software helps manage the complex data, pricing rules, promotions and store-level exceptions behind both paper and electronic shelf labels. As retailers invest in digital shelf technology, Kim emphasized that the hardware is only one part of the equation. The software supporting it is what helps protect ROI, prevent errors and simplify execution across hybrid paper-and-digital environments.

Read Kim Schneider’s article: Could an ESL Blindspot Sabotage Your ROI?

Walgreens Expands Its In-Store Media Strategy

Walgreens plans to bring Looma’s in-store advertising screens to 1,200 stores by early 2027, supporting remote content management, digitized end caps and performance measurement.

Chris questioned whether the investment could distract from Walgreens’ larger business challenges, while I pointed out that improving the core business and building a retail media network do not have to be mutually exclusive. We also discussed whether partnering with a company like Looma makes more sense than building the entire system in-house, particularly when it comes to hardware, content production and measurement.

What Does Meg Whitman’s Appointment Mean for Albertsons?

Albertsons has appointed Meg Whitman as its first Executive Chair. She will chair the board and serve as an operational and strategic adviser to CEO Susan Morris.

The move comes as Albertsons works through declining comparable-store sales and an operating-model reorganization. Chris questioned how Whitman’s background fits Albertsons’ current needs, while we also discussed what the new leadership structure could signal about the company’s direction and the wider grocery industry.

Then We Got to GrocerTalk Grab & Go

For this week’s Grab & Go, we covered Walmart’s partnership with Papa John’s, Aldi Süd’s minority investment in Dali Everyday Grocery in the Philippines, Skims’ new DoorDash delivery partnership and Gallup’s findings that U.S. alcohol consumption remains at a historic low.

From Walmart’s expanding delivery ambitions to the continued growth of retail marketplaces, there was plenty to unpack.

A Few Things Worth Checking Out From This Week’s Episode

Don’t miss our exclusive interviews from NRF Retail’s Big Show Europe in Paris, featuring the retail leaders and innovators shaping the future of grocery and retail. Catch them on the Omni Talk LinkedIn page, podcast channels and YouTube.

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Be careful out there,

Ben and the entire Omni Talk Team

Music by hooksounds.com