Sponsored By

Finance

Club channels, online retailers may have the edge in grocery in 2022

Oppenheimer grocery analyst Rupesh Parikh offers his forecast for the industry for the year ahead

Michael Browne, Executive Editor

December 8, 2021

During the recent SN Analysts Roundtable, Supermarket News spoke with Rupesh Parikh, grocery analyst at Oppenheimer, about the challenges the industry faced in 2021 and where he sees the grocery channel heading in 2022.

While labor and supply chain issues are likely to continue into the next year, Parikh said, there are some bright spots in the grocery segment, particularly in the warehouse club and online retail channels.

“I think that’s where you’re going to see the most growth,” he said in a video interview with Supermarket News. “During the pandemic Costco, BJ's, Sam's club, they've all had some of the strongest sales trends on both the one-year and two-year basis. And I think consumers have gravitated to the club channel. The habits have been stickier now that they're almost two years into this pandemic. So I think the club channel is going to retain those customers, and even post-pandemic I think they're going to be able to maintain more of the sales versus other channels.”

He continued, “Online is the other area where I think pure plays and also the online arms of conventional retailers are where you're also going to see a lot of shared gains.”

For more of Parikh’s thoughts on where the food retail industry is headed in 2022, check out the short video above.

About the Author

Michael Browne

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store News, License Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

See more from Michael Browne

You May Also Like