Navigatingthemarketheadwinds:

grocery

Thestateof

retail2022

NorthAmerica

May2022

StateofGroceryNorthAmerica1

Contents

6

ThestateofgroceryinNorthAmerica

32

Tech-enabledgrocerystores:Lowercosts,betterexperience

45

Growingbeyondgroceries:Theecosystemexpansion

64

grocers

Crisisoropportunity?How

canwinthetalentwar

80

Pushinggranulardecisionsthroughanalytics

19

Thenexthorizonfor

grocerye-commerce:Beyondthe

pandemicbump

37

Achievingprofitableonlinegrocery

orderfulfillment

52

Grocers’sustainabilityopportunityin

transformingthefoodsystem

72

ThestateofgroceryretailinMexico

StateofGroceryNorthAmerica3

BillAull

Foreword

MorethantwoyearsafterthestartoftheCOVID-19pandemic,thegroceryindustrycontinuestofacedisruption.Whilesomethemesshapingthesector—suchasthesupplychainandthegrowthofe-commerce—haveresonatedthroughoutthisperiod,additionalheadwindsareonceagaintestingtheresilienceofgrocersandthefoodindustryasawhole.ExecutivesatNorthAmericangroceryretailershaveexpressedsomeuncertaintyaboutmarketconditionsin2022,pointingtolowerprofitmarginsduringthepandemic,increasedpricesensitivity,greatercompetition,andrisinginflationthatisforcingconsumerstograpplewithanincreasedcostofliving.Thesetrends,aswellasglobalevents,arelikelytoonlyhaveagreaterimpactonconsumerconfidenceandspending.

Movingfurtherinto2022andbeyond,grocerswillbefacedwithincreasedpressureonmarginsandpricingastheynavigatetheneedtocatertobroaderconsumertastesanddemands.Omnichannelcomplexitywillcontinuetorise,withconsumersseekingmoreseamlessexperiencesandmanageablefulfillmentfees.

Werecognizethesignificantuncertaintyfacingtheindustry.Allgroceryexecutivesaregrapplingwithaseriesofquestions:Asconsumerbehaviorcontinuestoevolve,howcangrocersbestcatertonewtrendssuchashealthandwellnessandvalue?E-commercehasbecometablestakes,buthowcantheycontinuetoenhancetheomnichannelexperiencewhileimprovingprofitability?Howmuchinvestmentwilltheyneedtomakeinautomation,andhowcantheyharnesstechnologytochangetheoperatingmodelforstoresandemployees?Assustainabilitygainstraction,whatistherightwaytobeginthejourneyorbuildonexistingplans?

Thisreportaimstoanswerthosequestions.ItscontentsarepartofMcKinsey’sbroaderglobalseriesTheStateofGroceryRetail,anannualpublicationcoveringthreecontinents(includingAsia–Pacific,theEuropeanUnion,andNorthAmerica,withanewarticlespecifictoMexico).OurgoalistoframemajortrendsandissuesforCEOsseekingtostayaheadofmarketshifts.Toofferaholisticviewofindustrydynamics,insightsandanalysesfromourcolleaguesarecomplementedbysurveysandinterviewswithgroceryexecutives.

WewishtothankFMIforitscollaborationindevelopingtheseperspectivesandinsupportingtheengagementofCEOsfromleadingNorthAmericangroceryandconsumerpackagedgoodscompanies.Wehopethereportwilloffernewinsightsthatcanhelpgrocers,andthoseinthebroaderfoodindustry,remaincompetitiveduringtheseunprecedentedtimes.

Partner

NorthAmericanleader,GroceryPractice

BeccaCoggins

Seniorpartner

NorthAmericanleader,

RetailPractice

SajalKohli

Seniorpartner

Globalleader,

RetailandConsumer

PackagedGoodsPractices

4

Editors

BillAull

BillisapartnerinMcKinsey’sCharlotteofficeandaleaderwithintheRetailandConsumerPracticesfortheAmericas.HenowleadsMcKinsey’sNorthAmericangrocerypractice.HehasbeenwithMcKinseyforthelast12years,andhisclientworkhasspannedacrossbothretailandconsumer-packaged-goodssectorswithafocusontransformationtopics—commercialstrategy,organizationrestructuring,merchandising(pricing,promotion,assortment,andvendornegotiations),storeoperations,andsupplychain.Hehasworkedacrossnumerousretailchannelsandformatsandconsumercategories.

SajalKohli

SajalisbasedinChicagoandleadsMcKinsey’sglobalworkintheretailandconsumer-goodsindustries.Inmorethan25yearsofmanagementconsulting,Sajalhascounseledleadingglobalretailandpackaged-goodsclientsastheysetgrowthstrategiesandfacechallengesfromthechanginginternationallandscapeandfromdomestic-marketshiftscausedbydigitalization,consolidation,andnewentrants.Hehasservedretailandconsumer-goodsclientsacrossAsia,Canada,Europe,LatinAmerica,andNorthAmerica.Heservesretailclientsacrossmultipleformats,includinghypermarkets,puree-commerceplayers,grocers,restaurantchains,departmentstores,andleadingconsumer-goodscompaniesacrossfood,consumer-electronics,personal-care,beauty,andothercategories.Sajalfocusesonworkingwithseniorleadersandtheirmanagementteamstodrivegrowthandcommercialandoperationstransformationsacrossbothretailandconsumer-goodscompanies.Overthelastfewyears,hehasbeenspendingalotoftimewithorganizationsonthepotentialandimplicationsoftechenablement,includingadvancedanalytics,artificialintelligence,andtheirimplicationsonthefutureofwork.

Operationslead

EricMarohn

EricMarohnisanexpertwithMcKinseywhohasbeenwiththecompanyfor22years.HeisbasedinChicago,IL,focusinghispracticeontheNorthAmericangrocerymarket.Hisexpertiseisinmerchandising,marketing,sales,formats,andconsumerresearch,withextensiveknowledgeacrossNorthAmerica.Hefocusesongrocery,food,andconsumertrends;corporatestrategy;andgrowthtransformationininternationalandUS-basedmarkets.

StateofGroceryNorthAmerica5

Acknowledgments

SpecialthankstoJanieceLehmann,BeccaCoggins,DanielLaeubli,andJuliaSpielvogel.WewouldalsoliketothankBeatrizRastrolloandKarinRingvoldfortheirworkinconductingtheconsumersurveyfortheEuropeanreportandlayingthefoundationforthisone.

ThankstoLeffforprovidingeditorialanddesignservicesforthisreport.

Contributors

CaraAiello

Consultant

Boston

BasselBerjaouiAssociatepartner

Paris

JoséRicardoCota

AssociatepartnerMexicoCity

MauraGoldrickPartner

Boston

HolgerHürtgenPartnerDusseldorf

Alexandra

Kuzmanovic

Consultant

Chicago

BillMutell

Partner

Atlanta

RicardoSanrománPartner

MexicoCity

JaniceYoshimuraConsultantChicago

ManikAryapadi

Partner

Dallas

SaraBondi

AssociatepartnerPittsburgh

AndreasEss

Partner

Zurich

TylerHarrisAssociatepartnerWashingtonD.C.

NikolaJakicAssociatePartnerToronto

NicholasLandryAssociatepartner

Vancouver

JayaPandrangi

Partner

Chicago

PatrickSimon

Partner

Munich

TomYouldon

Partner

London

BillAull

Partner

Charlotte

VishwaChandraPartnerSanFrancisco

RicardoFerreiraConsultantLibson

JakeHart

Directorof

SolutionDeliveryCleveland

JonatanJanmarkPartnerStockholm

EricMarohn

KnowledgeexpertChicago

BeatrizRastrollo

Associatepartner

Madrid

Rapha?lSpeichPartner

Paris

FernandoAyala

Consultant

MexicoCity

GokmenCigerAssociatepartner

Istanbul

SebastianGatzerPartner

Cologne

partner

JennyHu

Associate

Toronto

BartoszJesse

Partner

Zurich

RahulMathew

Associatepartner

NewYork

JoshuaReuben

Consultant

Toronto

SarahTouse

Partner

Boston

StevenBegleyPartnerNewYork

BeccaCogginsSeniorpartnerChicago

PrabhGill

Associatepartner

Vancouver

KarinaHuertaConstultantMexicoCity

SajalKohliSeniorpartnerChicago

VarunMathur

Partner

SanFrancisco

DanielRoos

AssociatepartnerCologne

KumarVenkataramanPartnerChicago

6

?JacobFergus/GettyImages

Thestateofgroceryin

NorthAmerica

Theemergenceofnewchallengeswillforcegroceryretailerstoadapttheirstrategiesandoperations.Executivesshouldfocusonfiveprioritiesin2022.

byBillAull,BeccaCoggins,SajalKohli,andEricMarohn

StateofGroceryNorthAmerica7

Overthepasttwoyears,grocery

retailershavehadtoreassessandadapt

nearlyeveryfacetoftheiroperations.

Changestothegrocerylandscapewill

continue,shapedbybothmacroeconomic

factors(suchassupplychainchallenges

andinflation)andmercurialcustomer

preferences.Tokeeppace,retailersshould

focusonahandfuloftrends:theriseof

thevalue-conscious,healthier-eating

consumer;elevatedconsumerexpectations

foromnichannel;anincreasedemphasison

sustainability;strategicworkforceplanning

andinvestmentintechandanalytics;and

thegrowingimportanceofecosystems

andpartnerships.

Lookingbackon2021

InourconversationswithCEOs,“volatile”

wasthewordusedmostfrequentlytodescribe2021.Since2019,themarkethasgrownatanimpressive15percent,1arisethatwastheproductofincreasestobothpricesandvolumes.Butthesetop-linenumbersbelietheroilingretaillandscapebeneath.Significantshiftsinshareofstomach,supplyandlaborshortages,unprecedentedinvestmentsine-commerce,andrisinginflationcreatedwidespreaddisruptionforgrocers.

Accelerationofpandemic-relatedconsumertrends

AccordingtorecentMcKinseyconsumerinsights,thetrendsthattookholdatthestartofthepandemichavegained

momentum.Totale-commercesaleshavegrownnearly60percentsincethebeginningofthepandemic,thoughpenetrationrateshaveleveledoff.Atthesametime,consumersaremakingfewer

tripsandvisitingasmallernumberof

stores:theyare20percentmorelikelyto

gotojustonegrocerystoreaweek.As

such,consumersareincreasinglyseeking

outone-stopshopsandhaveexpressedan

interestinbuyingeverythinginoneplace

evenmorefrequentlyin2022.

Meanwhile,thefood-at-homemarket,

whichhadbeenslowlylosingshareto

foodawayfromhomebefore2020,has

surged8.7percent,fourtimesitshistorical

growthrate.Themovetofoodathome

coincideswithagrowingemphasison

healthiereating.

Together,thesetrendssuggestconsumerbehaviorshavefundamentallychanged—andgrocersshouldtakenotice.

Asteadyingbutstill-fragilesupplychainDisruptionstosupplychainsduringthepandemichaveincreasedout-of-stockratesbyupwardof15percent,comparedwithhistoricalratesof5to10percent.2Issuesoverthepasttwoyearshavebeenattributedtoahostoffactors,includingbottlenecksatports,laborshortages,andhuge,unanticipatedspikesinconsumerdemand.Thegoodnewsisthatsomeofthesechallenges,suchasoverseasvessel

delaysandcontainershortages,willpass.Others—suchaslaborshortagesandtheongoingshifttowardautomation—havebeenalongtimeinthemakingandwillrequireasustainedcommitmenttoresolve.

SignificantshockstothelabormarketThegroceryindustryemploysnearlythreemillionpeopleintheUnitedStates.3Everyaspectoftheindustry’speoplemodel—

1

2

3

Totalgrocerysalesacrosstraditionalgrocery,supercenters,massmarket,drugstores,conveniencestores,clubs,discounters,andonlinechannelsinclusiveofdrugspending;KantarLLC,Copyright2022.Allrightsreserved2022.

KellyTyko,“Grocerystoresstillhaveemptyshelvesamidsupplychaindisruptions,omicronandwinterstorms,”USAToday,January12,2022.

“Supermarkets&grocerystoresintheUS-Employmentstatistics2002–2027,”IBISWorld,updatedDecember29,2021.

8

corporate,in-store,andacrosseverypartofchallengesamongsuppliers,retailers,anditsoperation—isexperiencinganupheavalconsumershasincreasedthesegroups’

causedbyariseinabsenteeismandreceptivenesstohigherprices—afortunate

attritionaswellasbyemployeedemandsdevelopmentforretailersbecauseno

forflexiblelaborscheduling.Theworkforcesingleplayercanabsorbthefullmagnitude

participationrateplungeddramaticallyofpriceincreasesandremainprofitable.In

duringthepandemic;asofAugust2021,2021,groceryretailersraisedpriceseven

itwasstill1.6percentagepointsbelowwhiledoingtheirbesttomitigatecosts.

prepandemiclevels.TheacceleratingOneCEOnoted,“Inflationisexceeding

adoptionofautomation(suchasthecustomerincomegrowth.Ifcostincreases

increaseduseofself-checkout,imagearejustpassedthrough,itwillleadtolower

technologytoperformin-stockchecks,andsalesandprofitsandagreatermigration

automatedpickinginwarehouses)isalsoofcustomerstoEDLP4grocers.Itwillbe

changingtheworkforcedynamic.criticaltobalancewhentoabsorbthecost

inflationversuspassingsomeorallofit

EmergenceofunprecedentedinflationthroughtooptimizebusinessperformanceAtthebeginningof2022,inflationexceededandretaincustomers.”

7percent,fueledbyhistoricrisesinlabor,

freight,andcommoditiescostsduringtheGreatlyincreasedcapitalinvestment

latterhalfof2021.Today’sinflationaryThegroceryecosystemhasbegunto

environmentcontinuestostemfromablendchangedramaticallyasnewpartnerships

ofcyclical,structural,andglobalsupplyandentrantshavechallengedthestatus

chainissues.Therecognitionofsupplychainquo.Grocersincreasedtheircapital

4Everydaylowpricing.

Exhibit1

Grocerssignificantlyincreasedtheircapitalspendingtokeeppacewithachangingecosystem.

CapitalexpenditureCAGR,1%

4.2%

1.3x

1.8%

2010–18

2018–20

1Foracollectionof16publiclytradedhypermarketsandsupercenters,foodretailers,andgeneralmerchandisestores.Source:McKinseyanalysisofannualreportsfromgroceryretailers

StateofGroceryNorthAmerica9

expendituresatanamount1.3timestheir1.Riseofthevalue-conscious,

historicallevelsthanksinparttoaninfluxofhealthier-eatingconsumer

funding(Exhibit1).Considerthatventure-Withcontinueduncertaintyaroundthe

capitalfirmsraised$10billionforgroceryCOVID-19pandemicandgroceryinflation

start-upsinthefirstsixmonthsof2021thehighestithasbeenintenyears,

alone.Asinvestmentscontinuetopourin,consumershavebecomemorefocusedon

weexpecttheseenhancedcapabilitiestoshoppingforthebestvalueinaneffortto

disruptthefoodecosystem.stretchtheirdollars(Exhibit2).Moreover,

90percentofCEOsexpectincreasing

What’saheadfor2022pricingpressurefromconsumersto

Grocerswillfacefivetrendsthatcanbroadlycontinuein2022.Whenchoosingwherebedescribedbychangingconsumertastestoshopintheyearahead,45percentofandtheresponsesnecessarytokeeppaceconsumersindicatetheyplantoexplore

withthem.morewaystosavemoney,alevelvirtually

WithcontinueduncertaintyaroundtheCOVID-19pandemicandgroceryinflationthehighestithasbeenintenyears,consumershavebecomemorefocusedonshoppingforthebestvalueinanefforttostretchtheirdollars.

10

Exhibit2

In2022,consumerswilllookforwaystosavemoneywhilefocusingonhealthiereatingandnutrition.

Groceryshoppingattitudesin2022vs2021,1%change

Lookforwaystosavemoneywhenshopping

Switchtolessexpensiveproductstosavemoney

Activelyresearchbestpromotions

Buyprivate-brandproductsinsteadofknownbrands

Buyimportedproducts

Buyfoodfromfreshbarsanddelicountersinstores

Focusonhealthyeatingandnutrition

Buygroceriesinlargestores,whereIcanbuyeverythinginoneplace

Buygroceriesonline

Payahigherpricetogetanenvironmentallyfriendlyproduct

DecreaseStaythesameIncrease

3

52

45

10

63

27

8

8

63

29

71

21

29

61

10

16

67

17

4

57

39

4

70

26

27

21

53

20

62

17

Netintent,2%

+42

+17

+21

+13

–19

+1

+35

+22

–7

–4

Groceryshoppingattitudes

in2021vs2020,3%changeLookforwaystosavemoneywhenshopping

Switchtolessexpensiveproductstosavemoney

Activelyresearchbestpromotions

Buyprivate-brandproductsinsteadofknownbrands

Buyimportedproducts

Buyfoodfromfreshbarsanddelicountersinstores

Focusonhealthyeatingandnutrition

Buygroceriesinlargestores,whereIcanbuyeverythinginoneplace

Buygroceriesonline

Interactwithstoreemployeesatcheckoutvsself-checkout

2

53

45

8

63

29

7

63

30

9

71

20

30

62

8

18

64

18

3

55

42

6

67

27

26

54

20

21

64

15

+42

+21

+23

+11

–22

0

+38

+21

–7

–6

1Question:Thinkabout2022.Areyouplanningtodomore,less,oraboutthesameofthefollowing?

2Question:Whichofthefollowingstatementsbestdescribesyourattitudestowardgroceryshoppingin2021ascomparedwith2020?

3Netintentiscalculatedbysubtractingthepercentofrespondentsstatingdecreasefromthepercentofrespondentsstatingincrease.Source:StateofGroceryConsumerSurvey,November19–December7,2021(n=3,007)andJanuary13–25,2021(n=4,691);sampledandweightedtomatchtheUSgeneralpopulationover18yearsold

StateofGroceryNorthAmerica11

unchangedfromtheyearbefore.In

contrast,29percentintendtoactively

researchthebestpromotionsmore

frequently.

Consumersarebalancingtheiremphasisonvaluewithaninterestinhealthierfoods.About40percentofconsumers

expecttoincreasetheirfocusonhealthy

eatingandnutrition.Consumersintend

topurchasemoreregionalandlocal

goods(41percent),high-proteinoptions

(34percent),andofferingsthatarefree

fromcertainingredients(33percent),

alongwithothernaturallyhealthy

options(Exhibit3).Thiscombinationof

savingmoneyandeatinghealthier,more

nutritiousfoodsismoreprevalentamong

millennialandGenZconsumers,inpart

becausetheyarestillwaitingfortheir

financestoreturntonormal.

Theemergenceofthisyounger,value-

conscious,andhealthiereaterin2022

createsopportunitiesforgrocerstotailor

theirvalue-pricedprivate-labelproductstoincludehealthierofferings.

2.Elevatedconsumerexpectationsforomnichannel

Onlinebuyingisheretostay.Customer

preferenceforonlineanddeliveryorders

increasedbyaround50percentduringthe

pandemicandisexpectedtorisefurther

in2022(Exhibit4).Consumerscontinueto

bedrawntotheconvenienceandrelative

safetyofonlineshopping,anattractionthat

becomesevenmoreappealingasdelivery

costsdeclineandpromotionsincrease.

Themainbarrierstoonlineshoppingare

consumerpreferencesforpersonalcontact

instoresandexpensivedeliverycharges,

Theemergenceofthisyounger,value-conscious,andhealthiereaterin2022createsopportunitiesforgrocerstotailortheirvalue-pricedprivate-labelproductstoincludehealthierofferings.

12

Exhibit3

Consumersexpecttospendmoremoneyonfoodwithspecificattributes,suchashighproteinandnaturalingredients.

Spendpreferencebyfoodtype

in2022vs2021,1%changeDecreasethesameNetintent,2%

StayIncrease

Regionalorlocal

Naturallyhealthy

Highprotein

"Freefrom"artiicialingredients

"Freefrom"environmentallyhazardousingredientsormaterials

Environmentallyfriendly

Lowsugar

Uses100%recyclablepackagingLowcalories

Animalwelfarefriendly

Lowfat

Packaging-freeor

minimizedpackaging

Organic

Productswithlow-emissionsfootprint

Dairyalternatives

Glutenfree

Vegetarian

Lactosefree

Meatalternatives

Vegan

Halalproducts

2

57

41

5

59

36

4

62

34

6

61

33

6

62

32

6

63

31

6

64

30

5

67

28

6

66

28

7

64

29

7

66

27

6

68

26

11

62

27

9

66

25

13

58

29

14

62

24

17

57

26

15

61

24

17

57

26

19

56

25

19

59

22

+39

+31

+30

+27

+26

+25

+24

+23

+22

+22

+20

+20

+16

+16

+16

+10

+9

+9

+9

+6

+3

1Question:Thinkingabout2022,doyouexpectthatyouwillspendmore,thesame,orlessonfollowingtypesoffoodproductsascomparedto2021?2Netintentiscalculatedbysubtractingthepercentofrespondentsstatingdecreasefromthepercentofrespondentsstatingincrease.

Source:StateofGroceryConsumerSurvey,November19–December7,2021(n=3,007)andJanuary13–25,2021(n=4,691);sampledandweightedtomatchtheUSgeneralpopulationover18yearsold

thoughconsumersarelessconcernedabouttheseissuestodaythantheywerein2020(Exhibit5).Consumersalsopreferhomedeliverywhengroceryshoppingonline,markingachangefromthepreferenceforclickandcollectin2020.

Toshiftmorespendingtoonline,successfulgrocerswillinvesttocreateamoreseamless,personalizedexperience.Herearefourkeytrendstokeepinmind:

StateofGroceryNorthAmerica13

Exhibit4

Onlineanddeliveryordersincreasedbyabout50percentduringthepandemicandareexpectedtorisefurtherin2022.

StayIncrease

Decreasethesame

Consumerchannelchangeduring

COVID-19outbreak,1%change

10

38

52

13

32

55

12

35

53

29

56

15

Online(clickandcollect)

Online(scheduleddelivery)

Instantdelivery

Inaphysicalstoreorfoodmarket

e

Consumerexpectationsfor

channelchangein2022,2%chang

23

50

27

20

55

25

25

48

27

13

74

13

Online(clickandcollect)

Online(scheduleddelivery)

Instantdelivery

Inaphysicalstoreorfoodmarket

Netintent,3%change

+42

+42

+41

–14

+4

+5

+2

0

1Question:HowdidyourpreferencetoshopacrossthefollowingchannelschangeduringtheCOVID-19outbreak?

2Question:Inthenext12months,doyouexpecttoshopmore,less,orthesameinthefollowingchannels?3Netintentiscalculatedbysubtractingthepercentofrespondentsstatingdecreasefromthepercentofrespondentsstatingincrease.

Source:StateofGroceryConsumerSurvey,November19–December7,2021(n=3,007)andJanuary13–25,2021(n=4,691);sampledandweightedtomatchtheUSgeneralpopulationover18yearsold

Customersexpectaconsistentvalue

propositionacrossonlineandin-store

channels.Shoppersareengagingin

omnichannelacrossavarietyofshopping

missions—weeklygroceryshoppingand

midweektop-ups,forexample—andthey

expectsimilarassortments,pricing,and

promotions,amongotherfactors,across

channels.

example,AlbertsonswithGoogle)to

improveuserexperience.

Loyaltyandpersonalizationaremore

importantthanever.Grocersareimproving

theirshareofwalletwithomnichannel

shoppersbyexpandingtheircapabilities

inpersonalizedpromotionsandproduct

recommendations.

UserexperienceonappsisbecomingGrocersarealsoexperimentingwith

moreimportant.Consumersincreasinglyshopperengagementinomnichannel.For

valuetheabilitytosearchforproductsexample,someareusingmobileproduct

quicklyandbuildtheirbasketswhilescanningtogetproductinformation.

shoppingonline.WinninggrocersInaddition,scan-and-gocommerceis

haverespondedbyinvestingintheirchangingthewayshoppersinteractwith

e-commercecapabilitiesandforginggrocersbothinstoresandonapps.

partnershipswithtechcompanies(for

14

25

21

17

16

14

13

10

10

10

Exhibit5

Cost,quality,andmerchandisingauthorityarekeystoincreasing

grocerye-commerce.

Qualityandfreshnessoffoodremainobstaclesforconsumersinonlinegroceryshopping

Factorspreventingconsumersfrombuying

groceriesonlinemorefrequently,1%

31

Ipreferpersonalcontact

instores

Thedeliverychargesare

tooexpensiveforme

Qualityandfreshnessof

freshfoodsnotsuicient

Theproductsaretoo

expensiveforme

Mydesiredproductsare

notavailable

Theminimumordervalues

aretoohighforme

Diiculttoindproducts

Iamlookingfor

Theselectionisnot

largeenough

Thepossibledeliverytimes

areunsuitableforme

ToooftenIreceiveproductsthathave

notbeenorderedorthataredamaged,

orthereareproductsmissingondelivery

Changein2021,%

–15

–14

–3

–1

+1

–6

0

–1

–4

–1

1Question:Whatpreventsyoufrombuyinggroceriesonlinemorefrequently?Indicateallapplicablereasons.

Source:StateofGroceryConsumerSurvey,November19–December7,2021(n=3,007)andJanuary13–25,2021(n=4,691);sampledandweightedtomatchtheUSgeneralpopulationover18yearsold

Grocersarealsostartingtoseetheupside

fromomnichannel;theomnichannel

shopperspendstwotofourtimesmore

thanthein-storecustomer.Nowthefocus

hasshiftedfromprotectingin-storesales

tosupportingbusinessbothonlineandin

storesthroughomnichannelexcellence.

3.Increasedemphasisonsustainability

Severaldevelopments—thesuccessofthe

UNClimateChangeConference(COP26)

inGlasgow,thedipinemissionsatthe

beginningofthepandemic,andtheuptick

inclimate-relatednaturaldisasters—have

mademanyconsumersmoreawareof

theconsequencesoftheirpurchasing

behaviors.Thisemergenceofsocially

consciousconsumersisforcingFortune

500companiestoact.

Companiesbeyondthoseknownfortheirenv