Instacart and Allegiance Retail Services Expand Partnership to Power Omnichannel Growth for Independent Grocers
TECHNOLOGY
Storefront Pro now live across Allegiance retailers, with Foodtown introducing Caper Carts and additional in-store technologies rolling out in 2026.
As the grocery industry evolves in 2026, technology is helping independent retailers compete at scale. Instacart and Allegiance Retail Services have announced an expanded partnership to deliver enterprise-grade omnichannel tools to more than 125 independently owned supermarkets across the Northeast.
The centerpiece of this expansion? The rollout of AI-powered Caper Carts and a unified loyalty system that ensures local grocers can meet their customers wherever, and however, they shop.
Bringing the "Smart Store" to Main Street
Allegiance, the co-op behind banners like Foodtown, D’Agostino, and Gristedes, is moving aggressively to digitize the in-store experience.
Caper Carts: These AI-powered smart carts are already live at select Foodtown locations in New York, New Jersey, and Pennsylvania. They allow shoppers to scan items as they go and bypass traditional checkout lines.
Storefront Pro: Instacart’s enterprise platform is now powering the e-commerce backbone for all Allegiance retailers, enabling modern online shopping and Carrot Ads retail media tools.
Electronic Shelf Labels: Upcoming phases will include Carrot Tags, allowing retailers to update prices and promotions instantly across the store.
The "Unified Loyalty" Advantage
One of the biggest hurdles for independent grocers has been the "Loyalty Gap," the inability to track and reward customers seamlessly across online and offline channels.
Through a strategic integration with AppCard (Allegiance's loyalty provider), Instacart is bridging this divide. Customers will now receive the same personalized deals and digital coupons whether they are browsing on the app or pushing a Caper Cart through the aisles.
“Independent grocers play a vital role in their communities,” said Merrick Rosner, Head of Revenue at Instacart. “By meeting customers wherever they shop, Allegiance is giving its members even more ways to grow.”
The Data Behind the Basket
For independent retailers, this isn't just about "fancy carts." It’s about Profitability. By utilizing Instacart's retail media tools, small banners can now tap into the same advertising revenue streams once reserved for national chains.
“Our expanded partnership reflects Allegiance's commitment to innovation,” said Donna Zambo, EVP and CMO of Allegiance Retail Services. “We’re helping independent grocers meet evolving customer expectations while strengthening their competitive position.”
The "Invisible Giant" of Tech
In 2026, the competitive advantage for small business is "The Invisible Giant," the tech partner that provides the infrastructure without erasing the local brand. Instacart is proving that it’s not just a delivery app; it’s a Grocery Operating System.
For the Omnichannel Economy, the lesson is clear: convenience is the baseline, but personalization is the win. By unifying loyalty and in-store innovation, Allegiance and Instacart are ensuring that "shopping local" no longer means "shopping old-school". For brands in the retail space, the future belongs to those who can make the digital experience feel as familiar as the local neighborhood market.