Seventy-three percent of food retailers are investing in new technologies, like those related to ordering and delivery, dynamic pricing, and mobile checkout systems, according to The Food Industry Association’s The Food Retailing Industry Speaks 2022 research report.
It also found that about half of retailers surveyed are allocating more of their labor force to online purchases and in-store or curbside pickup.
Food retailers are pursuing ways to differentiate themselves as inflationary pressures increase costs and affect shopping behavior. Other than focusing on technology, retailers are increasing their offerings: over 80 percent are growing the space designated for fresh and grab-and-go foods, and 70 percent are stocking more nutritious items. As a result, locally sourced and organic produce, plant-based foods and animal protein alternatives, and allergen-free and gluten-free SKUs are expected to increase in the aisle.
“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, in a statement. “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.”
Positive impacts on business sales and profits were reported by 61 percent of retailers surveyed, despite macroeconomic challenges at the time. Food suppliers, however, noted a more fraught relationship to the economic climate, with only 50 percent reporting a positive impact. Both retailers and suppliers agree that operating costs will increase as a result of impending inflation.
“While inflation is a cause for concern for the food industry, it is much more concerning for American families who work hard to put food on their tables,” said Sarasin. “The food industry is committed to addressing these challenges so we can support families in the communities in which we operate by providing access to healthy and affordable foods.”
Related: Digital Groceries Sales Grow; Americans Concerned About Food Security