Reality bites: here's why the next grocery retail revolution will happen at the edge, not in the aisle
It’s time for a radical rethinking of the grocery model, according to Brittain Ladd, a supply chain consultant and former Amazon executive.
In a LinkedIn post, he said: “Most grocery stores are the same. They have a centre store filled with packaged, ambient products - cereal, pasta, soup, bread, peanut butter - and they have a perimeter where shoppers buy fresh fruits, vegetables, meat, dairy, cheese, prepared meals, baked goods, and alcohol. It's a format that has been in use for nearly 100 years in the USA.”
He added: “Here’s the reality: Margins in the centre store average 1–3%. Margins along the perimeter can reach 30–40%. Yet grocery retailers continue to pour time, capital, and labor into the least profitable part of their business - the centre aisles - instead of doubling down on the part that actually drives margin, differentiation, and loyalty.”
“I disagree with the grocers who are turning their stores into Las Vegas and Times Square through annoying in-store retail media. A much better option is to partner with Uncrowd., for the most advanced customer intelligence through AI powered analytics. Kroger spends over $10 million annually on useless customer surveys. Uncrowd can provide far superior data and results for $4 million.”
Ladd also believes that grocery retailers should outsource the centre store to companies like Instacart and DoorDash.
“Let them manage ambient goods, in-store inventory, replenishment, online grocery fulfillment and last mile delivery. Turn the centre store into a logistics layer that’s digitally optimised - not an operational burden. There are many interesting designs that can be leveraged to re-imagine the centre store.”
“This is an opportunity for DoorDash and Instacart (or Uber and Instacart (if Uber acquires Instacart) to revolutionise the grocery industry. Note to Kroger: Turn over the Ocado Group partnership to DoorDash.”
“Free up the grocer’s capital, space, and focus to reinvent the perimeter - the area that truly matters. The perimeter is where grocery retail’s future lies: Cooked and prepared meals for takeout or delivery; The freshest of the fresh fruits and vegetables; The highest quality meats, poultry, and fish; Personalised nutrition; AI powered kitchen planning and in-store dining experiences; AI health clinics and pharmacies.”
Innovation won’t happen in the aisle - it will happen around the edge, Ladd argues. The perimeter is where grocers create emotion, community, and profit.
He concludes: “The grocery retailer of the future will look less like a warehouse of goods and more like a culinary ecosystem: part restaurant, part kitchen, part experience hub - supported by outsourced logistics that deliver online grocery and food. The future can be today. Instacart and DoorDash can make this happen.”
“It’s time to stop thinking about “selling groceries” and start thinking about engineering shopper experiences that deliver velocity, margin, and growth. The next great grocery retailer won’t be the one with the best centre store. It will be the one that eliminates it.”
2025 RTIH INNOVATION AWARDS
Grocery retail was a key focus area at the 2025 RTIH Innovation Awards.
We received a record number of entries and many fantastic examples of the continued resilience and dynamism of the retail space during hugely challenging times.
For a full rundown of all of the shortlisted entries, click here.
Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC in Central London on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.
In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”
“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”
He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”
Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.
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