Dublin, Nov. 21, 2023 (GLOBE NEWSWIRE) -- The "State of Grocery Retail in 2023" report has been added to ResearchAndMarkets.com's offering.
As the pandemic-driven surge in grocery sales subsides, grocery retailers must contend with an increasingly complex macroeconomic environment and heightened consumer expectations. This report delves into the evolution of the global grocery retail sector in 2023, examining how various retailers are addressing current industry challenges.
The State of Grocery Retail in 2023 global briefing offers an insight into the size and shape of the retailing industry, highlights emerging trends, their effects on retailing in markets around the world, on the development of channels and consumers' shopping patterns. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market - be they the developments of new store types, the importance of non-store retailing, economic/lifestyle influences, private label or pricing issues. Forecasts illustrate how the market is set to change and criteria for success.
Key Findings
In 2023, the global grocery retail sector aims to recover from an unusually bad year
In 2022, as high rates of inflation battered consumers in Europe, the Americas, Africa and Australasia - and as the economy of China, relatively unaffected by inflation, stumbled due to other factors - the global grocery retail sector took a hit, posting an absolute dollar sales decline, in constant terms, for the first time in decades.
Grocery e-commerce and warehouse clubs are bucking the downturn
Value- and convenience-focused grocery channels are performing better, on a relative basis, than others, but two channels in particular - grocery e-commerce and warehouse clubs - stand out from the rest. Warehouse clubs, in particular, is doing brisk business, as the channel's marriage of low unit prices and middle-class cachet proves especially appealing.
Consumers are forcing grocery retailers to move beyond being "omnichannel"
In 2023, nearly all grocery retailers of any size have adopted digital strategies. This shift is not only due to an increase in online grocery sales powered by changing consumption patterns. It is also occurring because consumers now consider e-commerce fulfilment options like delivery and click-and-collect to be essential offerings rather than unique perks.
Grocery retailers increasingly live and die by their ability to manage four factors
As the global grocery retail sector faces new challenges due to an uncertain macroeconomic outlook, intensifying competition, the rapid pace of digitalisation, and increasingly demanding consumers, the success and failure of players in the space will hinge, more than ever before, on their ability to manage four factors: cost, user experience, supply chain optimisation, and scale.
Grocery retail is poised to return to growth, but small players face new challenges
The essential nature of grocery retail means it is hard to keep the sector down for very long. As a result, sales growth is projected to again be positive - though low - in 2023. Yet, as other factors converge to make grocery retail a more challenging enterprise than ever, small players in the space are increasingly in danger of being pushed out by larger, better capitalised rivals.
Key Topics Covered:
The state of grocery retail in 2023
- The global grocery retail industry stands at a crucial juncture
- Global grocery retail spending has gone into reverse
- With value and convenience paramount, spending is shifting across grocery retail channels
- Low unit prices and middle-class cachet is a winning combination for warehouse clubs
Bridging the physical-digital divide in grocery
- Being omnichannel is no longer a choice for chained grocery retailers
- Grocery operators rethink their approach to e-commerce fulfilment
- Three retailers demonstrate the regional divergence in the fortunes of quick commerce
- Walmart leads the way in global grocery e-commerce
- Changes in consumer behaviour make life more difficult for DTC food and beverage players
- Grocers make retail media networks an integral component of their businesses
Key challenges and opportunities
- Grocery retail is growing more complex
- Cost: Controlling costs remains grocery retailers' single biggest challenge
- Cost: Grocers seek to grow private label sales to increase profitability
- User Experience: Grocery retailers are on a quest to improve the quality of their service
- User Experience: Generative AI is grocers' newest tool to improve the customer journey
- Supply Chain Optimisation: E-commerce's rise makes logistics more important than ever
- Supply Chain Optimisation: Digitalisation transforms small local grocers' supply chains
- Scale: In the global grocery retail space, the big fish increasingly eat the little ones
- Scale: A proposed merger between Kroger and Albertsons rocks US grocery retail
Conclusion
- Although the outlook for the global grocery sector appears mixed, a repeat of 2022 is unlikely
- What's next for grocery retail?
For more information about this report visit https://www.researchandmarkets.com/r/geqw4n
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