AI, loyalty and ANZ grocery retailers: What's new
How grocery retailers can drive profits, increase engagement and consolidate customers in 2025/2026
In recent times, the Australian and New Zealand grocery marketplace has faced its fair share of ups and downs, challenges and opportunities. In this region we've seen supply chain interruptions, shortages, increasing costs, consumer price sensitivities and regulatory scrutiny against the backdrop of global market uncertainty and rapid advancements in digital technologies, particularly concerning AI and automation.
As discussed in Eagle Eye's latest grocers' ebook, Loyalty Lessons That Will Shape 2025, there are now a number of exemplary grocery loyalty programs that have set themselves apart from others. These programs master the fundamentals of loyalty with forward-thinking approaches and advanced, purposebuilt technology, along with the latest AI innovations.
Personalisation and AI delivering striking results
Personalisation has been an enduring goal for grocers, and for good reason. It's a path to delighting customers, encouraging engagement, and driving financial performance. Personalisation also allows grocers to allocate their marketing and promotional spending more efficiently, only presenting discounts on certain items to those customers most likely to be motivated by that discount. This kind of targeting represents a level of precision that mass marketing can't achieve.
Grocery retailers have a unique advantage here, given the vast amount of data generated by the extensive volume of SKUs in their inventory and the frequency of customer visits. And if they have a loyalty program, they have all the data they need to tailor offers to customers at the individual level.
Boston Consulting Group (BCG) estimates that personalisation leaders will experience US$570 billion in global growth by 2030. However, the impact of personalisation is not limited to projections; several well-recognised grocers are seeing significant financial returns from advanced personalisation strategies.
UK supermarket chain Tesco delivers personalised customer experiences through its massively popular Clubcard program. Tesco's latest trading statement reports that there are more than 23 million Clubcard households in the UK and that Clubcard sales penetration was 82% in the UK and 87% in Central Europe. There are also 16.3 million Tesco app users, with visits to the app increasing year-over-year.
This volume of digitally connected customers allowed Tesco to launch a high performing, high-engagement personalisation initiative driven by gamification: Clubcard Challenges. This program offers customer personalised, goal-oriented challenges over six week campaigns, with points rewards offered for completing challenges like spending £20 on certain line or range of products over the period.
Clubcard Challenges uses AI to create bespoke thresholds for each participant, drawn from insights into that customer's past purchase history and preferences, which are then analysed and processed by predictive AI algorithms.
The campaign's performance results are striking. During the final, Christmas-themed Challenges campaign of 2024, 10 million customers received their own personalised set of Clubcard Challenges. Of all customers who visited the Clubcard Challenges site or pages, 76% converted into players. Sixty-two percent of all players reached the first reward threshold, becoming winners. Those winners collected over half a billion extra Clubcard points over the campaign period.
During 2024, Tesco's H1 24/25 overall adjusted operating profit increased 15.6% over 2023 to £1.649 billion.
ANZ grocery retailers needs to adapt, innovate and embrace AI
The ANZ grocery sector's tight competition and changing conditions require retailers to constantly adapt their approach. What worked last year may not succeed today. Companies must take learnings from recent challenges in supply chains, stock management, pricing structures, customer price sensitivity and regulatory oversight to navigate 2025 effectively.
While modern, AI-driven personalisation, gamification and omnichannel engagement are transforming grocery loyalty globally, these approaches represent somewhat untapped opportunities in the Australian and New Zealand markets. While the true-personalisation sector is still young, ANZ retailers that implement such strategies could create a compelling advantage.
In addition to reflecting on the ebb and flow of challenges and opportunities that retailers have already experienced over the past several years, the key messages grocery retailers need to pay attention to concern the profitability of personalisation when backed with robust data and smart execution.
The execution of loyalty in modern ANZ retail combines data, personalisation and strategy in increasingly sophisticated ways. Grocery brands with a solid grasp on these elements can widen the gap between themselves and competitors who haven't evolved their approach.
The best grocery loyalty programs today understand that personalisation is now an engine of bottom-line results. They know that gamification as an end to itself has diminishing returns, but when executed with a purpose, it can be an incredibly valuable and ROI-delivering tool.
The top players also recognise that the impact of any omnichannel loyalty initiative is directly proportionate to the volume of customers that participate in its digital channels. More eyeballs equals more engagement, bigger baskets and bigger media opportunity.
Australian and New Zealand grocery brands that apply these lessons across 2025/2026 could make a real difference. Success, as ever, will rest on focusing on programs that customers find valuable, practical, engaging and effective.
Read more insights in Eagle Eye's latest grocers' ebook, Loyalty Lessons That Will Shape 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
29 minutes ago
- Scoop
‘Devil Will Be In Detail': Luxon Reacts To Possible USA-China Trade Deal
Article – RNZ But the prime minister says it can only be a good thing as the global trading environment seeks more certainty. Morning Report Prime Minister Christopher Luxon says a possible USA-China trade deal is positive news, but time will tell what it means for New Zealand and the rest of the world. US President Donald Trump said a deal with China is 'done' after two days of high-level talks in London. Luxon welcomed the news but wanted to see the finer details. 'What we want to see is more certainty in the global trading environment, and I've read the reports as well,' he said. 'The devil will be in the detail, but that can only be a good thing.' Luxon said he expected to discuss the matter with China President Xi Jinping on his next trip the global giant. 'I'm sure that will be a topic of conversation about how we see the global trading environment and how we're observing in the region, but also around the world,' he said. Despite the trade uncertainty, Luxon said New Zealand exporters to the US had been making good progress. 'They'll still finding really great opportunities to grow their businesses, they're doing a great job of targeting the right channels and customers,' he said. 'But yes, of course that will be a big top of conversation when I do catch up with both President Xi and Premier Li (Qiang) in due course.' Agriculture Minister Todd McClay also welcomed the news of a possible US-China trade deal. The overnight announcement comes as the government welcomes the state of the country's agriculture sector. The Ministry of Primary Industries' Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year – though it warns about global uncertainty. It estimates New Zealand's agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4. McClay told Morning Report if a US-China deal has been done it would be 'good news'. At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US. Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse. If things calmed down for international trade it would bring 'welcome relief' for exporters and result in some 'sensible decision-making'. Exporters 'go for value' McClay said the remarkable growth in primary exports was very positive. Dairy had enjoyed a solid season with a good supply of grass which had increased milk production. The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported. Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price. Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers. 'So we're seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to.' Luxon said the government, particularly McClay and Finance Minister Nicola Willis could take a 'tremendous credit' for the growth. 'We've created the conditions for growth; it's ultimately up to the businesses themselves to go out and seize on those opportunities,' he said. 'But if I think about the work that Todd's undertaken to make sure we're opening new markets, whether it's the GCC, the UAE, a 21 percent growth in the UK just in the last 12 months, a 28 percent in the EU by virtue of Todd bringing that agreement into earlier acceptance. 'There's been tremendous progress made on the trade front, and I think Nicola's work to make sure that she's cleaning up the books, good financial management, good fiscal management to lower inflation, to lower interest rates to get the economy growing, to get people employed – that's the work we've been doing as a government.' Luxon reiterated the government's belief in the importance of growth and said it was the primary industry sector pulling New Zealand out of a recession. 'We've got a really exciting future to shape it despite all the volatility that's out there in the world. 'Really proud of the primary industry sector, but also proud of the work of both Nicola and Todd and all of our team to create the conditions for growth as well.' On building in sustainability A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said. This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said. 'Grass fed now is increasingly wanted by consumers and they're willing to pay more.' On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change. McClay said that was not going to happen mainly because it would make exports to many markets untenable. He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures. 'We've been really clear – we think through technology and other things we can meet these obligations without putting farmers out of business.' Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon. McClay said the requirement of reducing methane by 10 percent by 2030 was on track to be met. 'So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees.' A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance. McClay said anything developed would have to go through rigorous scientific testing. There would be a range of solutions developed and farmers would decide which ones they wanted to pick up. 'The overseas customers through the dairy company should be paying for this, not the New Zealand farmer.'
1News
2 hours ago
- 1News
'Devil will be in detail': Luxon on possible USA-China trade deal
Prime Minister Christopher Luxon says a possible USA-China trade deal is positive news, but time will tell what it means for New Zealand and the rest of the world. US President Donald Trump said a deal with China is "done" after two days of high-level talks in London. Luxon welcomed the news but wanted to see the finer details. "What we want to see is more certainty in the global trading environment, and I've read the reports as well," he said. "The devil will be in the detail, but that can only be a good thing." ADVERTISEMENT Luxon said he expected to discuss the matter with China President Xi Jinping on his next trip the global giant. "I'm sure that will be a topic of conversation about how we see the global trading environment and how we're observing in the region, but also around the world," he said. Despite the trade uncertainty, Luxon said New Zealand exporters to the US had been making good progress. "They're still finding really great opportunities to grow their businesses, they're doing a great job of targeting the right channels and customers," he said. "But yes, of course that will be a big top of conversation when I do catch up with both President Xi and Premier Li (Qiang) in due course." Agriculture Minister Todd McClay also welcomed the news of a possible US-China trade deal. Trade Minister Todd McClay. (Source: ADVERTISEMENT The overnight announcement comes as the government welcomes the state of the country's agriculture sector. The Ministry of Primary Industries' Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year - though it warns about global uncertainty. It estimates New Zealand's agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4. McClay told Morning Report if a US-China deal has been done it would be "good news". At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US. Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse. If things calmed down for international trade it would bring "welcome relief" for exporters and result in some "sensible decision-making". ADVERTISEMENT Exporters 'go for value' McClay said the remarkable growth in primary exports was very positive. Dairy had enjoyed a solid season with a good supply of grass which had increased milk production. The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported. Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price. Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers. "So we're seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to." ADVERTISEMENT Luxon said the government, particularly McClay and Finance Minister Nicola Willis could take a "tremendous credit" for the growth. "We've created the conditions for growth; it's ultimately up to the businesses themselves to go out and seize on those opportunities," he said. "But if I think about the work that Todd's undertaken to make sure we're opening new markets, whether it's the GCC, the UAE, a 21% growth in the UK just in the last 12 months, a 28 percent in the EU by virtue of Todd bringing that agreement into earlier acceptance. "There's been tremendous progress made on the trade front, and I think Nicola's work to make sure that she's cleaning up the books, good financial management, good fiscal management to lower inflation, to lower interest rates to get the economy growing, to get people employed - that's the work we've been doing as a government." Luxon reiterated the government's belief in the importance of growth and said it was the primary industry sector pulling New Zealand out of a recession. "We've got a really exciting future to shape it despite all the volatility that's out there in the world. "Really proud of the primary industry sector, but also proud of the work of both Nicola and Todd and all of our team to create the conditions for growth as well." ADVERTISEMENT On building in sustainability A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said. This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said. "Grass fed now is increasingly wanted by consumers and they're willing to pay more." On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change. McClay said that was not going to happen mainly because it would make exports to many markets untenable. He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures. ADVERTISEMENT "We've been really clear - we think through technology and other things we can meet these obligations without putting farmers out of business." Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon. McClay said the requirement of reducing methane by 10% by 2030 was on track to be met. "So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees." A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance. McClay said anything developed would have to go through rigorous scientific testing. There would be a range of solutions developed and farmers would decide which ones they wanted to pick up. "The overseas customers through the dairy company should be paying for this, not the New Zealand farmer."
Kiwiblog
3 hours ago
- Kiwiblog
Was anyone held accountable?
Radio NZ reports: After spending $23m but failing to modernise the births, deaths and marriages registry, officials are having another go. The Department of Internal Affairs has written off $22.9m on the project abandoned last year, returned an unspent $58m to the Crown and remains locked in a dispute with the Australian company DWS over the contract it terminated in late 2023. 'Although some of the work completed will be able to be used for a future civil registration system replacement project, from an accounting standards perspective, it [decided] should impair (write off) all capital costs incurred to date,' DIA told RNZ. So $23 million wasted. Has anyone been held accountable for the failed project?
