The Current Economic State and Grocery Retail Economic Trends | Digital Grocer S5E6

The global pandemic has expedited many grocery retail economic trends that were already underway, such as the shift to online grocery shopping. In fact, research firm eMarketer predicts that by 2023, 22.2% of all grocery sales will be made online. This represents a significant increase from the 14.1% of sales that were made online in 2020.

Of course, the COVID-19 pandemic isn't the only factor driving these changes. Grocery retailers are also responding to consumer demand for greater convenience, wider selection, and lower prices. In order to meet these needs, we can expect to see more Grocery Stores adopting e-commerce platforms and curbside pickup/delivery options in the coming years.

In this episode of Digital Grocer podcast, hosts Sylvain Perrier and Mark Fairhurst are joined by Claire Fan, an Economist from the office of the CEO of Royal Bank of Canada. The three discuss the Canadian and U.S. economy and how current events are affecting grocery consumers, as well as what is happening from a geo-political perspective and how that will impact the economy and grocers in general.

Some of the topics covered include: the current macro state and trends with the Canadian and U.S. economy, how inflation is surging globally and what that means for grocers, how consumers are responding to the economic situation and the impact on consumer spending, strategies that grocery retailers are implementing to combat inflation and economic challenges. Throughout the conversation, Claire provides valuable insights into the current economic landscape and its impact on grocers. This episode is essential listening for anyone interested in staying up-to-date with the latest economic developments affecting the grocery industry.

Don’t miss Part 1 and 2 of this series on the impact of inflation:

1. Grocery eCommerce: Post-pandemic insights and strategy | Digital Grocer S5E4
2. The Impact of Grocery Inflation on Retailers | Digital Grocer S5E5

Click on the below link for more information:

https://digitalgrocer.com/podcasts/grocery-retail-economic-trends-to-prepare-for-in-2023-digital-grocer-s5e6/

Get ready for some Grocery Retail Economics! Here are the top 5 Grocery Retail Economic Trends to Prepare for in 2023:

1. Consolidation: Grocery store consolidation has been on the rise in recent years, and is only expected to continue. The reasons for this are two-fold: first, as brick-and-mortar stores increasingly close their doors, the larger grocery chains are able to scoop up market share. Second, as e-commerce continues to grow in popularity, many small grocery retailers simply cannot compete with the big boys when it comes to delivery and fulfillment.

2. Grocery eCommerce: Speaking of eCommerce, online grocery shopping is only going to become more popular in the coming years. Grocery retailers who have not already invested in eCommerce capabilities will need to do so quickly in order to stay competitive. And even those who have made the move online will need to continuously innovate in order to meet consumer expectations.

1. Private label products: Private label products have been gaining market share for a while now, and that trend is only expected to continue. Grocery retailers who want to stay ahead of the curve will need to focus on developing their own private-label brands that can offer quality products at a lower price point than the national brands.
2. Meal kits: Meal kits are another trend that is here to stay. As more and more consumers look for convenient, healthy meal solutions, grocery retailers that can provide meal kit offerings will be well-positioned for success.
3. Grocery delivery: Last but not least, grocery delivery is an area that is ripe for continued innovation. Grocery retailers that can find new and efficient ways to get groceries delivered quickly and affordably will be well-positioned to win over today's time-strapped consumers.

Named as a Top 10 Influential in Retail 2020 and a 2019 Grocery Game Changer, Sylvain Perrier is a true digital retail trailblazer.