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The FMI '2026 Food Retail Industry Report' shows that food retailers are simultaneously enhancing operational efficiency and customer experience through large-scale AI investments. The technology budget exceeds $20 billion in 2025, with AI adoption rising from 47% to 68%, and over half of surveyed companies have already seen a return on investment.
Summer is the sales peak for specialty grocery stores, but checkout lines can become a 'killer' of shopping baskets. Toast Retail is designed for complex transactions, supporting mixed categories, weighed items, and loyalty programs, helping merchants speed up checkout within 30 seconds and increase average order value through data-driven recommendations. Merchant feedback shows that after switching systems, customer experience significantly improved, and sales of high-value items increased.
Instacart announced on Thursday that it has acquired Arpalus, a startup developing an AI-powered shelf-scanning system, with deal terms undisclosed. The system uses computer vision to help employees record inventory with smartphones, aiming to reduce customer dissatisfaction caused by out-of-stock items and improve order fulfillment efficiency.
Aldi USA has officially entered Midtown Manhattan, New York City, with its new store located at 311 West 42nd Street near Times Square. The 25,000-square-foot store continues Aldi's consistent operating model, with nearly 90% of products being private label and featuring a seasonal product section. This move is part of Aldi USA's expansion plan, which aims to open more than 180 new stores by the end of 2026.
Kroger plans to acquire Giant Eagle for $1.65 billion. Antitrust experts believe this deal is more likely to be approved than the previous merger with Albertsons, due to limited store overlap and a shift toward a friendlier regulatory environment. However, the FTC may issue a second request for information, and state attorneys general may also intervene, leaving the deal uncertain.
New York specialty retailer DeCicco & Sons, in partnership with Swedish candy maker CandyKing, has launched a pilot self-service Swedish candy selection at its Brewster store, becoming the first U.S. grocer to offer this model. The pilot's results will determine whether it is rolled out to other locations.
Consumers are increasingly worried about the frequency of food recalls, but industry experts believe that the rise in recall numbers is not a sign of deteriorating food safety, but rather a reflection of enhanced detection and response capabilities. With electronic traceability and shared standards, the food industry is moving towards a more precise recall model, reducing waste and strengthening public trust.
Toast conducted a blind test from April 3 to 20, 2026, with decision-makers at small and medium-sized U.S. grocery stores. Results show that 93% of respondents feel comfortable using AI, and 90% of businesses are actively experimenting with AI. The report indicates that grocers' expectations for AI focus on operational improvements, such as better decision-making (45%), increased sales (39%), and optimized inventory (36%). Regarding application preferences, 54% of respondents favor integrating AI features into a single platform, and 38% trust existing retail technology providers to guide AI strategy. The report emphasizes that trust is an accelerator for AI adoption, integration is better than fragmentation, and human oversight remains a current expectation.
The FMI 2026 Food Retailing Report shows that 68% of food retailers are using artificial intelligence, up significantly from 47% in 2025. Technology spending as a share of sales nearly doubled from about 1% in 2024 to nearly 2% in 2025, with 71% of retailers planning to increase technology investment in 2026. Generative AI adoption rose from 43% to 59%, and deployment of organization-wide AI tools doubled to 40%. Despite ongoing economic challenges, the industry remains optimistic about technological transformation.
Brookshire Brothers announced on Wednesday that it has fully implemented Cognira's AI-driven promotion management platform PromoAI. The tool leverages artificial intelligence and advanced analytics to help retailers plan, execute, and evaluate promotions more precisely, addressing ongoing consumer concerns about food prices.