UNDERWRITTEN BY
UNDERWRITTEN BY
PRESENTED BY
The combination of these factors
had a powerful effect…
3
E-commerce
2
Surface Aversion
4
Shopper
Traffic
5
Employee
Training
1
Market Share
6
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Market Share
Grocers regained a decade of market share ceded
to foodservice.
But first, remember…
Surface Aversion
E-commerce
Shopper Traffic
Shoppers developed an aversion
to surfaces – and stores.
Online grocery sales remain elevated, with pickup emerging as a customer favorite.
Shopper traffic trends reflected a new
work-from-home world.
Employee Training
Investments in employee training
and wages increased.
Digital and Automation
Spending on digital and automation surged as
e-commerce pressure
expenses.
Digital and Automation
That prompted industry sales to reach an all-time high…
Challenging sales comparisons against prior year results have become commonplace as foodservice operators regain meal occasions. Food retailers understood this impact was coming as Americans re-engage with pre-pandemic behaviors, but other mega-trends impacting the industry now include…
Now What Happens?
Parting Thoughts
It is a tumultuous time in food retail. Robots and
self-checkout are transforming the store experience. Expansion of new fee-based membership programs, the continued growth of private brands and evolution of the
gig economy are also affecting food retailing.
The effects of the pandemic may be waning, but new
types of disruption and opportunity lay ahead.
Exclusive research and analysis from Progressive Grocer show retailers of food and consumables enjoyed record growth in 2020. The PG 100 ranking of the largest retailers of food and consumables in North America illustrates the dramatic effect of pandemic driven lifestyle changes, new shopper behaviors and the acceleration of disruptive trends.
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Tyson Fresh Meats is the world's leading supplier of beef and pork. We deliver a variety of the best meat products with consistent quality, every time. With decades of industry experience, we put a high priority on expert customer service. We've worked hard to earn the right to be called the Beef & Pork Experts .
TM
As the pandemic wanes and the vaccination rate moves past 50%, a great reopening of the world’s largest economy brings known and unknown changes to the world of food and consumables. A new era of uncertainty has arrived with fresh challenges and opportunities. Intensifying trends overlaid by the rapid advancement of technology and shifting shopper behaviors and product preferences are themes explored in Progressive Grocer’s 88th Annual Report.
A national emergency was declared March 13, 2020
1
2
3
4
5
6
Sales of companies
in the PG 100 increased
11.6
$
2 ,112
%
TRILLION
from $1,892 trillion the prior year.
To a record...
Faster Forever
The pandemic gave new meaning to what an accelerating pace of change and disruption really look like and changed the industry’s perception of speed.
The Role of the Store
Reduced store traffic and larger transaction size became commonplace during the pandemic as
e-commerce adoption surged. The role of the store evolved to become a mini fulfilment center.
Business Model Innovation
Would-be food industry disruptors such as Misfits Market, Imperfect Foods and Farmstead are attracting major interest from investors. These companies, and others, are intent on gaining share from established operators.
Supply Chain Efficiency
Successful retailers and suppliers understand the importance of supply chain, but even they gained a new appreciation for the discipline during the pandemic. A particular area of focus related to last mile fulfillment as e-commerce surged.
Expense Pressure
Expenses always matter, but the past
15 months presented new challenges as retailers paid appreciation bonuses, boosted hourly wages and incurred increased operational costs.
The ESG Enterprise
Environmental, social and governance matters have been elevated to a new level, challenging retailers to set goals, develop strategies and make a difference in new ways.
The Plant-Based Revolution
Plant-based products have received a lot of publicity and seen strong sales growth off of a small base to reach estimated total sales of $7 billion.
The Rise of Vertical Farming
There is tremendous activity in the area of indoor farming with companies such as 80 Acre Farms, Shenandoah Growers, AppHarvest, Plenty Unlimited, and newly public AeroFarms, in expansion mode.
What's
Next
What's Next
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What's
Next
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What's Next
What's
Next
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What's Next
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Next
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What's Next
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Next
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What's Next
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Next
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What's Next
What's
Next
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What's Next
What's
Next
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What's Next
WHAT'S NEXT
It took a pandemic, but grocers developed a solid digital footing that will serve as an accelerant of continued change and more rapid adoption of products and services demanded by shoppers.
WHAT'S NEXT
As the pandemic abates, retailers have an opportunity to entice shoppers back to rediscover the wonders of physical food shopping and usage of a lower cost to serve model where they select their own products.
WHAT'S NEXT
Innovation in food retailing extends beyond unprofitable startups. Ample innovation exists
in areas that help food retailers operate more efficiently, optimize pricing, promotion and assortment decisions, improve order accuracy and reduce food waste.
WHAT'S NEXT
The optimal fulfillment method for online grocery will gain clarity in 2021 as major retailers focus on the execution of alternative strategies involving micro
and macro fulfillment centers.
WHAT'S NEXT
Making a difference now means a regenerative retailer, a company whose operations have a positive effect as opposed to simply doing less harm.
WHAT'S NEXT
The plant-based movement is enjoying momentum due to a range of perceived benefits that resonate with younger shoppers. Excessive use of the plant-based claim could diminishes its value as an influencer of shopper behavior.
WHAT'S NEXT
Growing produce in climate controlled facilities that use a fraction of the water of traditional agriculture and offer supply chain efficiencies will be an irresistible value proposition for food retailers.
WHAT'S NEXT
Doing more with less will take on new meaning and automation in all areas of food retailing is going to accelerate, creating communication challenges for an industry that wants to showcase the opportunity it provides.
Food and consumable sales soared during a once-in-a-lifetime pantry loading phenomenon
Retailers enacted extensive safety protocols and new operational procedures
Social distancing and facial coverings became widespread
Adoption of grocery e-commerce accelerated
Supply chains withstood extreme duress and assortments were rationalized
Home cooking saw a resurgence and holidays gatherings were affected
