The State of Grocery in North America

Grocery store photograph

According to insights recently published by McKinsey, North American grocery retailers will have to adapt their strategies and operations throughout 2022 to overcome new challenges.

With a still-fragile supply chain and a fluctuating labor market, we are being advised to focus on a number of key priorities throughout the year. This includes meeting the needs of a large and growing number of socially conscious consumers. It is predicted that 2022 will see more shoppers placing even greater emphasis on sustainability in all areas (including packaging) – and making different choices because of it.

Consumer appetite for online and delivery orders is also expected to rise further this year. It seems like the pandemic is never-ending, so shoppers will continue to be drawn to the convenience and relative security of online shopping.

As inflation and cost-of-living increase, consumers will expect sustainability and quality without any price increase. In fact, and this is no surprise, more consumers than ever are actively searching for discounts and promotions as a prerequisite to making their purchase.

There will be a proliferation of new partnerships and ecosystems as retailers look to enhance their tech capabilities, increase their e-commerce reach, and create new and innovative value propositions. Companies that do this will be in a better position to meet increasing demands for volume and quality in their goods and packaging.

Those grocers who can successfully navigate these challenges will be better placed for success and growth in the years ahead. The ‘new normal’ presents many difficulties for grocers, but it also presents many opportunities for those who can adapt and optimize their processes to overcome those difficulties.