Tech or Bust: Independent Grocers Told to Embrace Digital Shift or Risk Fading Away

This analysis is based on reporting from Grocery Dive. For ongoing coverage of the grocery industry, subscribe to the free daily Grocery Dive newsletter.

LAS VEGAS — The message to independent grocers gathered here was unambiguous: adapt with technology or prepare to be left behind. During a series of panels at the National Grocers Association's annual conference, executives and analysts argued that the sector's historic reliance on community connection is insufficient against the dual tide of national chains' deep pockets and a rapid, AI-driven transformation of retail.

"The landscape is being rewritten in real-time," said Amy McClellan, Chief Commercial Officer at wholesaler SpartanNash. "Assuming your customer base is immune to technological change is a dangerous miscalculation. Regardless of how unique your store is today, you must have a strategic plan for integrating technology—it's your new lifeline."

The urgency stems from a widening gap. While mega-retailers invest billions in automation, AI-powered inventory systems, and seamless e-commerce, many independents have been slow to follow. Experts warn this isn't just about losing the online shopper; it's about inefficiencies that erode margins and limit data-driven insights crucial for supplier negotiations and personalized marketing.

Justin Luther, President of County Fair Food Stores, highlighted the partnership model. "We can't build everything in-house," he noted. "Aligning with the right tech partners unlocks capabilities and, frankly, better deals from CPG suppliers. When you demonstrate you have the digital tools to execute promotions effectively, it changes the entire conversation."

The discussion ventured into next-generation tools. Alex Jackson, VP of Sales and Marketing for Frieda's Branded Produce, pointed to emerging access models for advanced computing. "Quantum computing services are becoming accessible online," Jackson said, referencing a program at USC's Marshall School of Business. "The early adopters in our space will use it to optimize logistics and forecasting at speeds we can't imagine today. The race isn't about if, but how soon."

However, the goal isn't technology for its own sake. Thom Blischok, Chairman and CEO of consultancy Dialogic, framed tech as an enabler for the independent's core strength: human connection. "Use technology to free your staff from mundane tasks," he urged. "Redirect that human capital to greeting customers, knowing their names, and curating assortments. That's your sustainable advantage against the impersonal efficiency of giants."

The consensus? Technology is no longer a separate department; it's the foundation of modern grocery operations, from supply chain to checkout. For the independent sector, leveraging it effectively may be the difference between thriving as a community pillar and becoming a relic.

Voices from the Aisle

Michael Rodriguez, Owner of FreshMart (Kansas City, MO): "This hits home. We just implemented a new inventory system. It was a headache, but our waste is down 15% already. The panel is right—you can't just be the 'friendly store' anymore. You have to be a smart, friendly store."

Sarah Chen, Retail Technology Analyst: "The quantum computing mention is forward-thinking but risks distracting from foundational needs. Most independents first need robust POS data analytics and a functional e-commerce platform. Prioritize the immediate digital basics before the horizon."

Jim "Bull" Barnes, Former Grocer (Vocal Critic): "Absolute nonsense. They're telling us to become poor imitations of Amazon. My store closed after 42 years not because we lacked an app, but because property taxes and supplier pricing squeezed us dry. This is just tech vendors selling a fantasy to a drowning industry."

Lisa Hammond, CPG Sales Director: "From our side, Luther is spot-on. We allocate promotional dollars and innovative product placements to retailers who can measure the impact. A grocer with good data gets the best support. It's that simple."

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