Unlocking Grocery Profitability Through Technology: H Mart’s Omnichannel Blueprint

Earlier in the year, at NRF 2025, leaders from H Mart, VML, and VTEX came together to share a transformative story of how a traditional grocery brand is evolving through the strategic integration of technology, e-commerce, and marketplace innovation. With over 102 stores across North America and a loyal customer base, H Mart’s digital leap aims to unlock long-term profitability by merging logistics, personalization, and omnichannel capabilities.

Vince Colatriano, Executive Vice President of H Mart, acknowledged the brand's historical underperformance in digital grocery retail. "Compared to most published supermarket results, we are underdeveloped. We think we can grow tenfold," he stated. This stark realization has driven a major overhaul of their e-commerce platform, powered by VTEX, and supported by a new strategic improvement team dedicated to online growth.

Key to this transformation is H Mart’s investment in logistics infrastructure—expanding warehousing capabilities and building out IT systems that can support the next 40 years of digital-first operations. A bilingual interface on hmart.com ensures inclusivity and ease of use for a diverse customer base.

H Mart has optimized its fulfillment model through automation and intelligent distribution. In New Jersey, an advanced auto-store pick-and-pack system allows for high throughput and near-instant staff training. On the West Coast, a store-pick model powered by VTEX's technology delivers similar results. "Once orders are packed, they are shipped via H Mart trucks or carriers like FedEx and UPS," said Vince. A third fulfillment site is slated for launch, enhancing national reach.

Zip-code targeting helps determine fulfillment centers based on location and cold chain feasibility. If an area can’t support proper cold storage, the platform restricts certain items from being displayed—preserving product quality while managing customer expectations.

The VTEX-powered marketplace enables H Mart to offer hard-to-find or limited-import items without the burden of upfront inventory. "Sometimes the products we offer are so unique, they’re scarce even in Tokyo or Seoul," said Colatriano. This agile model allows for testing product viability before full-scale import.

The marketplace also supports cross-border gifting—a critical feature for customers wanting to send authentic items to family overseas. This builds global connectivity and reinforces brand trust while opening up new revenue channels.

E-commerce Expansion: From Underserved to Unleashed

Fulfillment Innovation: Speed, Scale, and Cold Chain Excellence

Marketplace Strategy: Testing, Scaling, and Global Gifting

Retail Media and Compressed Commerce

Humanizing AI: Personalization Without Losing the Human Touch

Key Takeaways

Beth Ann Kaminkow, Global Chief Commerce Officer at VML (currently CEO of dentsu North America), emphasized the profitability potential of retail media networks. "Marketplace makes it ripe for retail media networks, especially when you have a unique, captive audience," she explained. H Mart’s specialized consumer base offers rich opportunities for endemic and non-endemic brands to engage across the funnel—from awareness to conversion.

She also highlighted the evolving trend of compressed commerce, where digital shopping needs to be swift, personalized, and seamless. Whether customers shop for their full grocery haul or a quick restock, the system must deliver convenience at scale.

As AI becomes central to modern commerce, VTEX and VML emphasized balancing automation with authenticity. "It's about amplifying the human aspect, not replacing it," Beth Ann said. From predictive product suggestions to natural-language search, AI is being integrated into VTEX’s roadmap in a way that enhances personalization without diluting the shopping experience.

Michael Von Bodungen, General Manager at VTEX North America, imagined a future where a customer could simply say, "I want to make bibimbap tonight," and receive a curated list of ingredients instantly. "That's the power of AI—especially in the food space," he added.

Michael closed the session by distilling the discussion into three strategic pillars:

Leverage the Marketplace – Use digital platforms to expand assortment, test new products, and unlock new customer segments without holding inventory.

Fulfillment Flexibility – Adapt operations to regional needs using automated micro-fulfillment or store-pick models, ensuring speed and freshness.

Human-Centric Innovation – Drive personalization and engagement through AI, but retain the brand’s emotional resonance and cultural relevance.

H Mart’s journey reflects a broader industry shift: profitability in grocery doesn’t just come from scale—it’s powered by smart, scalable technology that meets consumers wherever they are.