66 • March | April 2026 • abasto.com Strategic Initiatives Abasto: What approaches do you recommend for defining priorities? Schilling: We think of strategy as a funnel. You have to evaluate whe- ther the opportunity is large enough and whether it aligns with the bu- siness’s capabilities. Anything that doesn’t fit well should be discarded without fear. Anything that meets both criteria becomes a priority. Balancing the Immediate with Transformation Abasto: How do you handle the urgent without losing sight of the long term? Schilling: You need balance. You have to resolve the immediate to have room to maneuver, but without compromising future relevance. Ta- riffs will continue to create uncer- tainty, so keeping your eye on the next five years ahead will be key. Competition Between E-commerce and Direct-to- Consumer Sales Abasto: How are retail leaders res- ponding to digital advances? Schilling: Brands that sell food di- rectly to consumers are still small. The big challenge is e-commerce. In the U.S., click-and-collect pre- dominates over fast delivery. Retai- lers must optimize pickup, in-store flows, and operational efficiency to meet promised times. Growth Opportunities Abasto: Where are the biggest opportunities in the next five years? Schilling: In mastering value, adjusting assortment to actual demand, strengthening the peri- phery—which continues to grow— and creating differentiation throu- gh incremental traffic. Precise alignment between the planogram and the consumer will be decisive. The Impact of Artificial Intelligence Abasto: Does L.E.K. also advise on the use of AI? Schilling: Yes. We analyze the “AI delta”: where the company is today and what opportunities it has to improve processes, logistics, pic- king, or dat. Emerging Behaviors Abasto: What habits should ma- nufacturers and retailers watch for in 2026? Schilling: First, have a portfolio that meets value needs and cul- tural preferences. Second- and third-generation Hispanics shop across multiple channels: they vi- sit independent stores as well as Walmart, Kroger, and H-E-B. In addition, Hispanic-focused private labels will continue to grow. Inde- pendent stores continue to stand out for their depth and unique as- sortment, including products im- possible to find in large chains. Assessing Your Role in the Market Abasto: How should retailers as- sess their current position? Schilling: By knowing their con- sumer. A retailer’s assortment in the South cannot be the same as one in the Midwest. One or two tor- tillas are not enough; you need va- rieties that cover value, local, and “better for you,” as well as a clear and accessible display. What Sets Those Who Adapt Successfully Apart Abasto: What sets retailers who manage to transform themselves apart? Schilling: Commitment. It’s not enough to try one or two Hispanic SKUs. It requires depth, assort- ment, merchandising support, and, where appropriate, commu- nication in Spanish. We also see Hispanic chains such as Vallarta adopting more comprehensive models—bakery, prepared foods— to attract a wider audience. • Continuation of page 64 • FOOD INDUSTRY