Grocers strategy to combat macroeconomic concerns. GroceryShop 2022

We are pleased to present our views on the Grocery landscape and main grocers’ strategy to combat macroeconomic concerns, doing so with the aim of helping increase transparency and communication between the companies themselves, as well as financial and strategic investors.

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Due the actual macroeconomic events, grocers major concerns are:

  • Inflationary pressure, prices of supplies have soared up creating margin pressure on grocers
  • Post-Covid Impact, unpredictable post-pandemic reversion to brick and mortar stores by customers have resulted in increased ordering and inventory management costs for grocers
  • Excess inventory, unpredictable customer demand combined with reduced consumer spending has led to excess inventory
  • Labour challenges, most of the grocers have observed shortage of skilled labour across markets
  • Reduced purchasing power, due to tighter budgets of customers and low switching costs, grocers find it difficult to maintain market share in competitive categories
  • Supply chain constraints, logistics operations have become costly as a result of high energy prices and labor shortage
  • Shift in consumer shopping and eating habits, customers are less willing to spend outside, they prefer to save by following sustainable food-at-home trend during inflationary times
  • Rising energy costs, fuel and natural gas prices have contributed to pressure on margins