Sponsored By

Catering to the post-pandemic consumer? Here’s 3 proactive strategies.

A new report from FMI details how the food industry is making significant investments to meet shoppers where they’re at.

Chloe Riley, Executive Editor

September 8, 2022

2 Min Read
GettyImages-a0048-000348.jpg
“A major trend that has emerged from the pandemic is shoppers are looking for fresher, healthier, more convenient options at their grocery store,” said Leslie Sarasin, president and CEO of FMI.Getty Images

TOP TAKEAWAYS 

  • Both retailers and suppliers anticipate that inflation will cause operating costs to increase 

  • Retailers are expanding numerous fresh or perimeter departments

  • Despite macroeconomic challenges, a majority of retailers (61%) pointed to a positive impact on business sales and profits in 2021

Despite a challenging year marked by a persisting pandemic, historic inflation, supply chain bottlenecks, and labor shortages, the food industry is making significant investments to meet shoppers’ evolving tastes, according to a new report from FMI—The Food Industry Association.

Three of those areas in particular, include:

  1. New technologies. Some 73% of retailers are experimenting with new technologies like foodservice ordering and delivery, dynamic pricing, and mobile checkout systems to improve the customer experience.

  2. Labor allocation for online purchase fulfillment and in-store/curbside pick-up. 52% of retailers are increasing labor allocation for online purchase fulfillment and 48% are increasing labor for in-store/curbside pick-up.

  3. Expanding fresh. More than 80% are increasing the space they allocate to fresh-prepared grab-and-go products, with 70% offering foods with beneficial nutrition attributes for health and well-being. 

These findings are according to the group’s annual comprehensive research report, “The Food Retailing Industry Speaks 2022.”

Related:Fresh food sales on the rise, especially online

“A major trend that has emerged from the pandemic is shoppers are looking for fresher, healthier, more convenient options at their grocery store,” said Leslie Sarasin, president and CEO of FMI. “Food retailers have absorbed this feedback and are making great strides to create both online and in-person shopping destinations that cater to shoppers’ evolving tastes.”

According to the report, category departments expected to see growth include:

  • Locally sourced (72%)

  • Organic produce (62%)

  • Plant-based foods and animal protein alternatives (64%)

  • Allergen-free (38%)

  • Gluten-free (35%) 

Despite the macroeconomic challenges, the report stated that a majority of retailers (61%) pointed to a positive impact on business sales and profits in 2021 from local and national economies. 

On the other hand, food suppliers – surveyed for the first time in the 74-year history of the Speaks report – were less upbeat (50% positive, 36% negative). Both retailers and suppliers agree that the current economic climate will not be as favorable, with both retailers and suppliers anticipating that inflation will cause operating costs to increase (78% retailers, 90% suppliers).

Related:Plant-based foods take their place in the grocery basket

Meanwhile, the report indicates that the war in Ukraine is expected to have a negative impact on business (55% retailers, 45% suppliers) in light of factors such as strains on exports from Ukraine and overall impacts on the global economy.

About the Author

Chloe Riley

Executive Editor, Supermarket News

Chloe Riley is the Executive Editor of Supermarket News, which delivers the ultimate in competitive business intelligence, news and information for executives in the food retail and grocery industry. A graduate of the School of Journalism at Columbia College Chicago, Chloe previously served as a Digital Strategist at SEO firm Profound Strategy, Associate Editor at B2B hospitality mag HOTELS Magazine, as well as CEO of her own digital strategy company, Chlowe. She lives in Woodstock, Illinois. 

Email her at [email protected], or reach out on LinkedIn and say hi. 

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like