Grocery Stores NAICS 445110

Jan 14, 2026 - Grocery Spending to Rise in 2026

• Consumers plan to spend more on groceries in 2026, according to an international survey conducted by consulting firm AlixPartners. While grocery is the only retail category expected to see higher overall spending this year, the outlook for traditional grocery stores is cloudy. Shoppers remain highly price‑sensitive, with 60% saying better prices or promotions are the top reason they would change stores. High prices are also reshaping behavior: many consumers plan to buy cheaper items, reduce impulse purchases, and shop less frequently. Younger and higher‑income shoppers are the most likely to increase spending, offering growth potential for retailers that can target them effectively. Digital shopping and delivery have exposed consumers to more options, intensifying competition and enabling “cherry‑picking” across multiple banners. For grocery stores, the spending increase represents opportunity, but retaining customers will require sharper pricing, stronger value messaging, and tighter loyalty strategies.
• Albertsons’ third quarter results reveal how rapidly artificial intelligence is reshaping the grocery industry, Supermarket News reports. The company’s new AI‑powered search tool drove a 10% increase in basket size among users, according to CEO Susan Morris, showing how smarter digital discovery can directly lift revenue. Albertsons is scaling AI across operations, using generative tools to improve labor forecasting and scheduling, an efficiency move that could reduce labor costs and set a precedent other grocers will follow. AI is also strengthening Albertsons’ ecommerce performance, contributing to 21% digital sales growth and faster fulfillment, with over half of online orders delivered within three hours, according to the company. These capabilities help the grocer gain market share even as middle‑income shoppers show new signs of price sensitivity and trade‑down behavior. As consumer budgets tighten, Albertsons is leaning on AI‑driven personalization, loyalty targeting, and cost management to retain shoppers.

• Joining a growing number of cities testing publicly funded options for affordable fresh food in areas private grocers have shunned, the Azalea Fresh Market opened in Atlanta this summer, The Wall Street Journal reported in November. After years of trying to lure major chain grocery stores to downtown Atlanta, the city contributed $8 million in cash, grants, and loans to open the 20,000-square-foot store. According to WSJ, the city’s goal is for the store to become profitable without any government subsidy within three years. With the same funding, Atlanta is already aiding the construction of a second planned store 6 miles away, expected to open in 2026. New York City’s mayor-elect Zohran Mamdani campaigned on opening publicly funded grocery stores. Mamdani’s goal is for the city-backed stores to undercut competitors on price by allowing them to operate free of rent and property taxes at city-owned sites.
• President Trump has ordered a federal investigation into US food-related industries and foreign-controlled companies for potential price fixing as his administration faces pressure to address rising grocery costs, Grocery Dive reported in December. The Trump administration has directed the Justice Department and Federal Trade Commission to probe meat processors, seed and fertilizer suppliers, and equipment companies, especially those with foreign ownership. The investigation into anti‑competitive behavior in the food supply chain could impact supply chain stability and pricing. Near term, suppliers, notably major meatpackers, will face heightened scrutiny and potential disruptions to their operations that could affect product availability and pricing. Grocers could also face new compliance expectations as the government increases oversight of food supply chains. However, if investigators uncover and curb anti‑competitive practices, retailers could eventually see lower wholesale prices, particularly for beef, where costs have hit record highs.