When customers provide their phone numbers or loyalty cards at the checkout line of a supermarket, they unknowingly hand over valuable personal data. Supermarkets like Kroger collect and analyze this data, including information from third-party brokers, to infer details about customers such as race, ethnicity, age, finances, and online activities. This data is then sold to consumer brands for targeted advertising. Kroger’s merger with Albertsons is drawing attention to its extensive data collection practices, with regulators and lawmakers examining the potential impact on privacy. While loyalty programs offer benefits to shoppers, the sharing and aggregation of shopper data raise concerns about privacy and the potential for re-identification.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Supermarkets collecting and monetizing customer data | From limited data collection to extensive data monetization | More advanced and widespread use of customer data | Profit opportunity and targeted advertising |
| Kroger and Albertsons merger | Consolidation of top supermarket chains | Expanded customer data pool, potential erosion of privacy | Increased market competition and profit opportunity |
| Use of loyalty programs to collect shopper data | Increasing reliance on loyalty programs for data collection | Greater use of personalized advertising and targeted promotions | Scarcity of high-quality first-party data |
| Retail ad networks for targeted advertising | Growing use of retail ad networks for targeted advertising | Increased personalization of ads and optimization of ad spending | Enhanced marketing strategies and revenue growth |
| Concerns about privacy and data sharing | Heightened awareness and scrutiny of data privacy practices | Potential for federal privacy legislation and consumer protection | Public demand for privacy and data security |