Inmar Intelligence continues to guide food retailers on the
Winston-Salem, NC, September 23, 2021 (GLOBE NEWSWIRE) – Inmar Intelligence, a data and technology-based services company, today released its 2021 report on the future of food retailing , which provides a detailed overview of the food retail industry in order to identify and quantify market dynamics, trends and behaviors. In this annual report, Inmar Intelligence recapitulates the activities of the previous year and provides projections for the next five years in terms of dollar share and number of stores for traditional groceries (traditional supermarkets, fresh format, limited assortment, super warehouse and small grocery store), non- Traditional grocery store (wholesale club, supercentre, dollar / extreme value, drugs, supermarkets and military) and convenience stores (with and without gasoline).
The traditional grocery store saw an overall 10.9% increase in sales in 2020, to $ 623.3 billion from $ 562.3 billion in 2019. This channel saw the largest percentage increase in sales. year-over-year, resulting in a 1.9% year-over-year increase. share of the dollar at 44.4%, a reversal of share losses in 2018 and 2019 in favor of non-traditional groceries. In addition to the increase in sales, the number of traditional grocery stores increased 0.6% to 40,616 locations at the end of 2020. The largest increase in the number of stores occurred within limited assortment, while Super Warehouse saw a 16.2% year-over-year drop in store count.
Online grocery and consumable sales grew 48.9% year-on-year to $ 119.0 billion in 2020, driven by a 74% increase in digital food and beverage sales . This increase is in part attributed to partnerships between retailers and third-party purchasing and delivery services, such as Instacart (100% increase in the number of partners year-over-year) and Target (the partnership with Shipt has recorded a 300% increase in same day deliveries).
“Digital acceleration is affecting the long-term growth plans of food retailers and manufacturers,” said Jim Hertel, senior vice president of Inmar Intelligence. “Consumers have the convenience at their fingertips with the ability to order groceries online, but in-store sales are returning to pre-pandemic levels. So, for all retailers, now is the time to build loyalty through digital hybrid experiences. These personalized commitments on digital and tailor-made and thoughtful in-store experiences will make it possible to meet expectations now, which will strengthen long-term loyalty. “
Over the next five years, Inmar Intelligence expects a global return to pre-pandemic channel trends. The growth of traditional and non-traditional grocery shopping will come at the expense of the Convenience format – small stores that sell basic groceries, non-food items and ready-to-eat foods designed for easy and quick access, and may include gasoline. This format is expected to continue to decline, dropping from 15.2% of the dollar’s share in 2020 to 12.9% in 2025.
Additional forward-looking findings from the report include:
- Following the accelerated growth rate of e-commerce sales in 2020, digital sales of groceries and consumables are expected to experience a stable compound annual growth rate (CAGR) of 18% from 2020 to 2025, reaching the equivalent from 15 to 20%. of the 2025 dollar share
- Sales growth in 2020 for the traditional grocery store will help the channel maintain its dollar share through 2025, increasing slightly to 45%.
- Super Warehouse will continue to experience the largest sales decline in all formats with a -9.6% CAGR from 2021 to 2025, falling to less than 1.0% of the dollar’s share in 2025, due to a 60% drop in the number of stores expected
To view the full 2021 Future of Food Retailing report, please visit https://www.inmar.com/blog/research/2021-future-food-retailing-report.
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