Independent grocers adopt Instacart tech to enhance shopping experience

SAN FRANCISCO - Several independent grocery chains across the U.S. are implementing Instacart’s (NASDAQ:CART) enterprise technology solutions to modernize both in-store and online shopping experiences, according to a company press release. The company, which maintains impressive gross profit margins of nearly 75% and has achieved revenue growth of over 10% in the past year, continues to expand its enterprise technology footprint. According to InvestingPro data, Instacart’s strong financial health score and minimal debt position indicate solid operational execution.

Big Bunny Market in Massachusetts and Stewart’s Marketplace in Utah have introduced Instacart’s AI-powered Caper Carts, which allow customers to track spending and check out directly from their shopping carts. The smart carts use NVIDIA Jetson technology to identify items as shoppers place them in the basket.

"We’ve served our community for generations, and Caper Carts are a great way to bring convenience to our aisles," said Jonathan Cournoyer, Owner at Big Bunny Market.

Luke’s Local Grocery in California has implemented FoodStorm, Instacart’s order management system, to streamline its deli made-to-order business. The platform, which has more than doubled its presence to over 3,000 North American stores since the end of 2024, helps grocers manage prepared food orders while improving operational efficiency.

Meanwhile, S&C Foods in Tennessee has adopted Storefront Pro, Instacart’s customizable e-commerce solution that offers features like weekly ad integration, AI-powered personalization, and various fulfillment options.

"Storefront Pro will make it easy for us to create a best-in-class online platform that maintains our local identity that our customers know and love," said Shane Means, Operations Manager at S&C Foods Inc.

According to Instacart, the number of stores using Caper Carts has nearly tripled over the past year, with the technology now present in nearly 100 cities across 15 states. This expansion aligns with the company’s robust financial performance, as revealed by InvestingPro analysis, which shows the company maintaining a healthy current ratio of 3.32 and generating substantial free cash flow. For detailed insights into Instacart’s growth trajectory and comprehensive financial analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

Nick Nickitas, General Manager of Independent Grocery and Mid-Market Retail Partnerships at Instacart, noted that independent grocers are "leading the charge in retail innovation" to provide more seamless shopping experiences while strengthening their competitive position. Based on InvestingPro’s Fair Value analysis, Instacart currently appears undervalued, suggesting potential upside for investors as the company continues to expand its technology solutions. InvestingPro subscribers have access to 8 additional ProTips and comprehensive valuation metrics that provide deeper insights into Instacart’s investment potential.

In other recent news, Instacart has expanded its business features to retailer e-commerce sites, including Storefront and Storefront Pro, allowing businesses such as restaurants and schools to place orders directly through retailer websites and apps. Additionally, Instacart has launched a new integration with TikTok, making it the first retail media network to offer end-to-end capabilities on the platform. This partnership enables select consumer packaged goods advertisers to use Instacart’s retail data for targeting and performance measurement within TikTok Ads Manager.

Instacart has also partnered with United Airlines to offer MileagePlus members delivery perks, including $0 delivery fees on orders of $10 or more, applicable for seven days around domestic flights. On the analyst front, Guggenheim initiated coverage of Instacart with a Neutral rating, citing slower anticipated growth and competitive pressures. Piper Sandler downgraded Instacart from Overweight to Neutral, also due to competitive pressures, and reduced its price target to $41.00 from $62.00. These developments highlight various strategic moves and market challenges facing Instacart.

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