Western grocery chains are competing aggressively to secure customer loyalty and market dominance.
In a gathering of eight prominent grocery retailers from the Western United States, the Western Association of Food Chains' annual convention in Palm Springs, California, provided a platform for industry leaders to discuss their growth strategies. The retailers, including Albertsons Companies, Costco, Food 4 Less, Fred Meyer, Gelson's, Raley's, Stater Bros., and The Save Mart Companies, shared insights into their plans for the future.
While specific 2025 strategies for these companies have yet to be publicly released, some key trends and developments emerged from the convention.
Fred Meyer, for instance, is focusing on sustainability, local sourcing, food waste reduction, and energy-efficient store operations. The retailer is also increasing private label penetration and integrating more seamless loyalty experiences across store and digital platforms.
Gelson's, catering to high-income and health-conscious shoppers in Southern California, is doubling down on exclusive products, premium perishables, and immersive in-store experiences. The company is also expanding its mobile app to offer enhanced personalized offers, digital coupons, and content like recipes and nutritional tips.
Save Mart is growing again, acquiring stores in the Pacific Northwest and remodeling its existing fleet with a focus on experience, localization, and efficiency. The company has launched a massive center store reset with SymphonyAI, applying AI and predictive analytics to optimize assortment, promotions, and shelf allocation. Save Mart is also executing a multi-year transformation plan focused on merchandising, operations, and digital strategy.
Raley's is modernizing its fleet with more efficient store formats, particularly in underserved markets and high-growth regions. The company is also pushing into more prepared meals, culinary experiences, and meal kit options, while simultaneously partnering with farmers and suppliers who align with its values. Raley's is also expanding its digital capabilities, using AI-driven forecasting and loyalty data to localize pricing and promotions in real time.
Stater Bros. is undergoing a major SAP transformation and developing a new loyalty program. The company is also investing in talent, infrastructure, and store formats, with a focus on evolving multicultural merchandising to reflect its diverse customer base.
Costco's strategy remains rooted in limited SKUs, customer value, and operational consistency, with $250 billion in fiscal 2024 sales. The company is expanding its digital media capabilities and is focusing on regional buying teams to create consistency across markets while still supporting regional autonomy.
Food 4 Less is navigating the intersection of affordability, loyalty, and cultural relevance, with a renewed focus on promotional clarity, digital coupons, and hyperlocal assortment planning.
Albertsons Cos. has 45 million identifiable households in its loyalty system, up 15% year over year, and is focusing on digital engagement, loyalty, and personalized value. The company is driving digital transformation through its retail media platform, the Albertsons Media Collective, which served 7 billion ad impressions in 2024 and delivered an average return on ad spend of $13. E-commerce is accelerating at Albertsons with 34% year-over-year growth, driven by app improvements, flash delivery, and real-time customized substitutions.
As these retailers continue to shape the future of grocery shopping, keeping an eye on official communications from each company, press releases, and industry trade publications will provide valuable insights into their evolving strategies.
- Fred Meyer is not only focusing on sustainability and reducing food waste, but also increasing their private label penetration and integrating loyalty experiences across store and digital platforms.
- Gelson's is focusing on exclusive products, premium perishables, and immersive in-store experiences, while also expanding their mobile app to offer personalized offers, digital coupons, and nutritional content.
- Save Mart is executing a multi-year transformation plan focused on merchandising, operations, and digital strategy, including a center store reset with AI and a partnership with farmers and suppliers who align with their values.
- Albertsons Cos. is driving digital transformation through their retail media platform, while also growing their e-commerce, with 34% year-over-year growth and an average return on ad spend of $13. Their focus is on digital engagement, loyalty, and personalized value for their 45 million identifiable households.
