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10 Best Investments for Grocers

Written by Margaret Thacker | Feb 19, 2026 1:00:00 PM

 Investing is a major part of owning any business — and grocery stores are no exception. You have to decide where to spend, where to hold back, and how to measure the results of every decision you make. 

With new tools and retail trends popping up every year, many of which look appealing at first glance, how do you know which investments will actually deliver returns?

This article outlines 10 practical investments grocers can make to improve daily operations and strengthen customer loyalty without massive upfront costs.

Investments in Operations

Operations affect every part of your store, and without proper investment, small issues can compound — pricing mismatches at checkout, expired product left on shelves, or staff wasting time fixing problems that better systems could handle automatically.

Investing in operations safeguards profits and simplifies day-to-day tasks. Here are three investments that can make your daily operations run more smoothly.

1. Inventory and Labeling Systems

For specialty grocers, managing high SKU counts and short shelf-life items makes inventory management and labeling critical. Fresh produce, meat, deli, and prepared foods all require tight control over expiration dates, lot numbers, and price accuracy.

When investing in inventory and labeling, most grocers invest in tools that:

  • Connect labels to real-time inventory tracking to reduce stockouts and overstock, and track improvements with monthly stock discrepancy reports.
  • Automate weighted item labels to ensure prices at checkout match shelf tags, as measured by fewer pricing disputes and customer complaints.
  • Monitor expiration dates and lot numbers to cut spoilage and write-offs, which you can track via monthly shrink reports.
  • Integrate with point of sale (POS) reporting to identify high- and low-turnover SKUs, improving ordering decisions and reducing excess inventory.

Integrating all inventory and labeling into a single, connected system makes it easier to implement price and product changes quickly across multiple departments or locations, while giving store leaders better visibility into product movement and purchasing needs.

2. Shrink and Waste Reduction Tools

Waste alone costs the grocery industry more than $50 billion in lost profits annually — and without strong tracking and prevention systems, many stores lose far more to spoilage, damage, and internal shrink than they realize.

Most grocers invest in reporting software, expiration tracking tools, prepared foods production tracking, and pricing workflows that help sell at-risk inventory before it becomes a loss. The best systems help teams spot risk earlier and act faster.

Related Read: Sustainability in Grocery Stores: What Shoppers Expect in 2026

Grocers should focus on tools that can:

  • Track shrink by department or category to pinpoint loss across your store, using monthly shrink reports to see where improvements occur.
  • Send expiration alerts so staff can pull, rotate, or reprice items sooner, reducing expired product write-offs.
  • Create markdown rules for near-expiration items to sell them before they expire, improving sell-through on discounted products.
  • Align prepared foods production with actual sales patterns to reduce overproduction and cut end-of-day disposals.
  • Trigger reordering based on stock levels and sales velocity to avoid stockouts and excess inventory.

Ultimately, shrink reduction starts with visibility. Stores that track loss by department, category, and product type can spot patterns early and correct issues before they grow.

3. Energy-Efficient Equipment and Temperature Monitoring

Utilities and refrigeration are major drivers of overall grocery operating costs, especially for stores with large fresh or frozen departments.

Instead of repeatedly repairing aging equipment, investing in modern refrigeration and monitoring systems can lower energy costs, reduce spoilage, and make it easier to maintain food safety standards.

Smart equipment decisions also support long-term growth. Newer units and layouts allow more consistent storage, easier expansion of fresh or frozen departments, and support for higher volume without outgrowing your equipment.

When considering upgrades, grocers should focus on equipment that can:

  • Meet Energy Star or equivalent standards to confirm energy-efficient performance and lower electricity costs compared with older units.
  • Offer improved insulation and cabinet design to reduce energy loss and maximize usable storage space.
  • Include built-in temperature logging or simple monitoring tools so staff can quickly identify and address deviations before products spoil.

New energy-rated cases, freezers, and coolers often cost more upfront, but the return comes through lower utility bills, less spoilage, and fewer product losses.

Investments in Customer Experience

Customer experience investments drive repeat visits and larger baskets, but consistency matters — employees need clear expectations for customer interactions and loyalty program rewards, and shoppers need to know what to expect at every visit.

Here are investments that directly impact customer behavior and retention.

4. Loyalty Programs

Loyalty programs can encourage repeat visits, increase basket size, and engage customers in a personalized way — but only with the right strategic planning.

Most programs focus on points-based rewards, digital coupons tied to purchase history, and phone number enrollment. Before launching a program, decide what fits your store — which offers motivate shoppers, which departments to highlight, and how often to reward behavior.

Related Read: Customer Loyalty Trends: 4 Ways Listening to Customers Will Grow Your Grocery

Industry-specific POS systems with built-in loyalty features make these decisions easier to act on, allowing you to set up rewards, track points, and deliver targeted discounts at scale.

When investing in a loyalty program, look for tools that can:

  • Track points and rewards automatically so customers can easily redeem incentives.
  • Set up tiered rewards and custom pricing for specific customers or point thresholds to encourage loyalty and higher spending.
  • Use detailed customer analytics (e.g., last visit, total spend, top products) to create targeted offers.
  • Enroll and update customer profiles at the register to keep information current and support personalized promotions.

Loyalty programs work best when tailored to your specific customers. Monitoring redemption data and collecting feedback through small participation incentives helps you adjust your offers and maintain strong engagement over time.

5. E-Commerce

E-commerce is no longer optional for grocery stores in 2026. Shoppers expect online ordering, and a digital storefront helps you reach customers far beyond your business’ physical location.

Investing in e-commerce means focusing on two connected components — your online storefront and the delivery or pickup logistics. Keeping both aligned ensures inventory stays accurate online and in store, preventing stock issues or overselling.

When considering e-commerce investments, focus on solutions that can:

  • Integrate with major grocery e-commerce platforms to connect online orders with store inventory.
  • Sync inventory counts with your POS to keep availability accurate online and in store.
  • Support pickup or curbside workflows handled through your e-commerce partner.
  • Provide reporting on online sales trends to guide ordering and merchandising decisions.

Once the right technology is in place, integrate it into your daily operations — set up a dedicated pickup area, assign staff to handle order prep during their shifts, and establish routines for keeping online availability accurate.

Over time, tracking metrics like order accuracy, customer satisfaction, and repeat online orders can show you whether your e-commerce investment is driving long-term revenue.

Investments in Labor

Beyond payroll, investing in your employees helps them work more efficiently and confidently — while giving you better visibility and control over store operations.

Here are a few smart investments you can make to better support your team.

6. Employee Scheduling and Time Tracking

Accurate time tracking and clear schedules are foundational investments in your team. They help employees track hours accurately, reducing payroll errors and giving you insight into any additional staffing needs.

Related Read: 4 Strategies for Grocery Store Employee Management

If you’re still using manual systems or punch cards, investing in a POS with built-in clock-in/out and activity tracking makes this process more reliable and visible.

Look for tools that can:

  • Report hours worked and staffing levels so managers can assign shifts based on actual demand.
  • Control employee access to certain systems and areas, so you can prevent mistakes and maintain security.
  • Connect employee activity to operational results, like shrink or promotion execution, so staff understand the impact of their work.

While not particularly glamorous, investing in the right tools for your staff keeps payroll and scheduling reliable, and provides insight into individual performance so you can recognize strengths and identify opportunities for targeted training.

7. Training Programs

To have a well-functioning team, you need to invest in their professional development — and nothing beats industry-specific training.

The programs you decide to offer depend on your store’s layout and product mix, but common training courses for grocery staff include food handling licenses, POS training, OSHA safety procedures, cash handling, and customer service skills.

When thinking about where to invest your money for employee training, focus on programs that:

  • Provide cross-training opportunities so employees can rotate between cash, stocking, and online order fulfillment — giving your team flexibility while keeping operations covered.
  • Align with individual career goals (e.g., front-of-house service, warehouse management, department specializations) so employees see a clear path for growth.
  • Offer certifications or licenses that qualify employees for higher-level tasks and show measurable skill growth.

If you’re unsure where to start, the National Grocers Association offers a course catalog that covers many of these skills, and most states provide safety or food handling programs that meet local requirements — giving you a concrete starting point for designing your training investment.

Investments in Technology

What many grocery store owners probably think when they hear “investing” is upgrading technology, and it’s one of the most important upgrades you can make.

Bonus Resource: Affordable Tech Upgrades That Save Grocers Time Every Week

The right systems connect everything we’ve discussed into a single, centralized place, giving you clarity over daily activity and the data you need to make better decisions.

Here are three technology investments that make a tangible difference in store performance.

8. Industry-Specific POS System

As we’ve discussed, your POS system needs to understand the unique requirements of the grocery industry.

While a generic system may still be able to process payments, it often lacks the features grocers need — such as scanner-scale integrations, perishable inventory management, and connections to customer loyalty programs or your online storefront.

To get the right system, look for a POS that can:

  • Accept multiple payment types, including cash, card, mobile wallets and SNAP/EBT, so all customers can pay without issues.
  • Support mobile inventory management with handheld scanners, letting staff complete counts, make quick edits, and check stock out on the floor.
  • Apply promotions and loyalty points automatically, reducing errors and rewarding repeat visits.
  • Handle sell-by-weight items by integrating with scales, keeping prices accurate at checkout.

During your conversations with POS vendors, think beyond the software itself. What hardware do they provide? How many registers will you require, and will any of them be self-checkout kiosks? What peripherals do they include (e.g., scales, scanners, printers), and which would you need to buy separately?

Thinking about these extra details in advance helps you come prepared to conversations and get a clearer picture of both your initial and monthly costs.

9. Store Analytics and Reporting

Many systems generate reports, but they aren’t always easy to interpret or customize. You might want to see exactly how much shrink came from spoilage versus damage last month, or compare sales and margin performance across different departments.

Your POS and reporting tools should be clear enough to quickly scan for insights, yet detailed enough to reveal patterns a basic system might miss.

Invest in analytics tools that let you:

  • Break down shrinkage by department and reason to identify sources of loss.
  • Analyze customer behavior, including first and last visit, total spend, and top products purchased, to spot loyal shoppers or missed opportunities.
  • Export or connect data to external tools for deeper analysis, such as segmenting frequent buyers for targeted sales campaigns.

These reports help you adjust ordering, staffing, promotions, and loss prevention using real data — giving your store a measurable advantage instead of relying on past seasonal patterns or gut instincts.

10. Digital Marketing and CRM

Even the best systems, team, and products won’t matter if shoppers don’t know about your store or how to find it. That’s why it’s so important to invest in robust marketing tools.

If you’ve set up a loyalty program, for example, customer relationship management (CRM) platforms can turn your loyalty data into actionable campaigns and reduce the manual work needed to reach customers. This helps you create more targeted promotions based on actual shopping behavior, encouraging repeat visits and larger baskets.

When evaluating digital marketing tools, focus on systems that:

  • Automate email and SMS promotions for loyalty members based on points, purchase history, or reward tier, saving time while keeping messaging relevant.
  • Segment customers and deliver personalized offers that encourage repeat visits and larger baskets.
  • Compare campaign performance with in-store sales to show exactly which promotions deliver ROI.
  • Use loyalty data to inform campaigns, turning customer behavior into measurable marketing efforts.

Considering these capabilities as part of your investment helps you evaluate the true cost of marketing tools, including software subscriptions, integration requirements, and setup time, while giving you confidence that your spend drives measurable results.

Start Investing in the Right Tools for Your Grocery Store

Every dollar you put into your store should have a clear purpose, though that’s easier said than done. Your store’s size, layout, and product mix shape which investments make the most sense, and focusing first on solutions that address pressing challenges keeps spending practical.

Look at your budget in terms of immediate needs and long-term value. Some upgrades improve daily operations, support staff, or drive repeat business, while others add ongoing costs like software subscriptions or maintenance.

Once priorities are clear, the right technology helps you get the most from each investment. An industry-specific POS system like IT Retail combines inventory, labor, promotions, loyalty, and online sales in one system — giving you the visibility to see which investments deliver the most meaningful results.

To match features to your store and budget, try the Build & Price tool to design a setup tailored specifically to your operation.