Demographic shifts, ongoing inflationary pressure, rising value expectations, and the growing influence of global flavors in the U.S. consumer diet will shape food retail strategies for 2026.
In this context, Abasto spoke with Alison Schilling, managing director and partner in the Consumer practice at L.E.K. Consulting, to analyze which food retail strategies for 2026 will help supermarkets remain competitive, drive growth, and better connect with an increasingly segmented shopper base.
L.E.K. Consulting is a strategic advisory firm that supports retailers on growth initiatives, store expansion, white-space analysis, operational optimization, and commercial excellence. The firm also helps food retailers determine where to invest in selling space, refine assortment, and reach new consumers through acquisitions or improved value propositions.
Consumer Trends Shaping Food Retail Strategies for 2026
Abasto: What consumer trends are redefining the market?
Schilling: U.S. consumers are demanding more flavor and variety. Exposure to Mexican, Cuban, Puerto Rican, and other cuisines has expanded from foodservice into retail. This is driving assortment growth and expansion of the Hispanic aisle, even in conventional supermarkets—a key pillar of food retail strategies for 2026.
Value Expectations Under Persistent Inflation
Abasto: How have consumer expectations around value changed?
Schilling: Inflationary pressure has not eased. We see what we call an “hourglass economy,” with growth at both the premium and value ends. Shoppers are more price-sensitive, which benefits clubs, discount formats, and private labels. Middle-income consumers feel squeezed and are trading down.
Emerging Shopper Behaviors Retailers Must Watch
Abasto: What behaviors should manufacturers and retailers focus on in 2026?
Schilling: First, retailers need portfolios that cover value needs and cultural preferences. Second- and third-generation Hispanic shoppers are highly omnichannel. They shop at independent retailers as well as Walmart, Kroger, and H-E-B. Hispanic-focused private brands will continue to grow. Independent grocers still stand out for their depth of assortment and unique products unavailable at large chains.
Related Article: Retail Learning Institute’s Course Offerings and Success Stories
Assessing a Retailer’s Role in the Market
Abasto: How should retailers evaluate their current positioning?
Schilling: By truly understanding the local consumer. A retailer in the South cannot assort the same way as one in the Midwest. It’s not enough to carry a couple of tortillas. Retailers need value options, local relevance, and better-for-you choices, supported by clear and accessible merchandising.
What Separates Successful Food Retailers
Abasto: What differentiates retailers that successfully adapt?
Schilling: Commitment. Testing one or two Hispanic SKUs isn’t enough. Retailers need depth, strong merchandising support, and, where appropriate, Spanish-language communication. Hispanic chains such as Vallarta are also adopting more complete formats—bakeries and prepared foods—to attract a broader customer base.
Setting Priorities Within Food Retail Strategies for 2026
Abasto: What approach do you recommend for setting priorities?
Schilling: We view strategy as a funnel. Retailers must assess whether an opportunity is large enough and whether it fits their capabilities. If it doesn’t meet both criteria, it should be dropped. What fits becomes a true priority within food retail strategies for 2026.
Balancing Short-Term Pressure and Long-Term Relevance
Abasto: How can retailers manage urgency without losing sight of the future?
Schilling: Balance is essential. Retailers need to solve immediate challenges to create room to maneuver, but not at the expense of future relevance. Tariff uncertainty will persist, making a five-year strategic view critical.
E-Commerce, Click-and-Collect, and Operational Efficiency
Abasto: How are leading retailers responding to digital growth?
Schilling: Direct-to-consumer food brands remain small. The bigger challenge is e-commerce. In the U.S., click-and-collect dominates over rapid delivery. Retailers must optimize pickup operations, in-store flows, and labor efficiency to meet promised time windows.
Where Growth Opportunities are Emerging
Abasto: Where do you see the most significant opportunities over the next five years?
Schilling: In owning value, aligning assortment with actual demand, strengthening the perimeter—which continues to grow—and creating differentiation through incremental traffic. Precise alignment between planograms and shopper needs will be decisive.
The Role of Artificial Intelligence
Abasto: Does L.E.K. advise clients on AI adoption?
Schilling: Yes. We analyze the “AI delta”—where a company stands today and how AI can improve logistics, picking, data analysis, and processes. Identifying practical, high-impact use cases is what delivers real results.