Not long ago, I shared a not-quite-horror story about an underwhelming grocery store five minutes from my home. It’s one I have to visit on time-crunched errands – it’s definitely not a place I want to be. I won’t name and shame, but “perks” include broken down, clattering carts, patchy, occasionally baffling availability of staples, chronic understaffing, no baskets… These folks even ran out of paper bags once.
I could go on… but I’ll spare you.
Fortunately, when I have some extra time, there are a couple of further out supermarkets I actually enjoy visiting. They’re all a little different, but in common they’re easy to navigate; where items are makes sense, reasonably quiet shopping carts (aaaah!), really nice assortments, and, just as often as not, interesting surprises. Decent coffee, too.
Sure, I usually leave having spent a little more than I planned – with more than I planned on carrying. But isn’t that the point?
If I didn’t know better, I’d say these grocery stores were more like… destinations.
It’s not just my hot take. It turns out, I’m just getting swept up in a powerful and very real trend.
It’s All About Grocery-Plus
One of the most interesting takeaways from FMI’s The Food Retailing Industry Speaks 2026 report is where grocery executives are choosing to invest. When you step back and look at the pattern, a clear picture emerges: They’re trying to build (or, in a lot of cases, renovate) stores that people want to visit.
Look at the industry’s priorities.
Nearly nine in 10 retailers now operate fresh prepared foodservice programs. And 87% emphasize local assortments throughout the store, while 85% feature organic assortments. Retailers also told FMI they’re expanding perimeter departments and allocating additional space to private brands and specialty products.
None of those investments is accidental – capital is too precious and margins too thin for “accidental.”
They’re all reasons to make another trip.
I’ve given you a glimpse of mine, but think about your own shopping habits. How often do you drive across town because one store has a better selection of canned vegetables?
Probably never.
But like me, when you have time, I bet you’d gladly make the trip for exceptional produce, a great bakery, fresh sushi, an outstanding meat department or prepared meals that solve tonight’s dinner problem with a bang.
That is destination retail.
There’s a New Dimension to the Competition
Yes, there is stiff, even threatening competition with Amazon, and with warehouses and discounters.
But these days, supermarkets are also competing with restaurants, meal-delivery services, coffee shops, and virtually anywhere else consumers choose to spend their food dollars.
Winning that competition is going to take more than low, low prices. It takes giving shoppers a reason to leave the house.
That’s why fresh departments continue to receive so much attention – and capital. It’s why prepared foods have become much more strategic, and why local products are a red-hot point of differentiation.
As the FMI report reveals, tech has a big role here as well – though perhaps not in the way most people imagine. Retailers who’ve invested in next-level analytics, AI, and operational improvements are going to be able to execute destination experiences more consistently. Better forecasting equals fresher products, and tight inventory planning reduces those frustrating out-of-stocks. Better data allows retailers to spend less time managing operations and more time creating a shopping experience worth returning for.
As we’ve said, those advantages are difficult to duplicate.
In many ways, the modern supermarket is evolving from a place that simply distributes food into one that curates experiences – fresh bread coming out of the oven and hitting the counter, local peaches in season. Maybe a pharmacist who knows your name or a prepared meal that saves me an hour in the kitchen. Let’s see Amazon try that.