European Grocery Retail Trends
(5 minute read)
The post-pandemic grocery retail landscape indicates a few key trends that emerge around consumer shifts. These are around online shopping, value consciousness, and lifestyle agendas.
Online shopping:
The online trend is set to remain for some time to come with consumers demanding more variety and flexibility in online grocery shopping. Retailers will have to make rapid changes to their online service provision in order to satisfy changing consumer demand.
Value consciousness:
Consumers have become more value conscious and this will impact on sales of big brands, brand premiums, and will benefit smaller, affordable, and discount brands. With disposable incomes affected by the wider economic trends, consumers will remain more cost and price conscious, switching to less expensive unbranded goods.
Lifestyle agendas:
The pandemic and lockdown have made consumers more reflective, thoughtful, and slow paced. Consumers are now focusing more on health, fitness, nutrition, self-care, and mindfulness in their consumption. Consumer concerns are also about issues such as sustainability so more local, environmentally friendly, and sustainable products are sure to find favour.
Ten Key Trends will shape the future of European Grocery Retail
- Online shopping will continue to contribute to the majority of retail sector growth.
- Growth in online will come at a cost as it will eat into brick-and-mortar sales which will lose market share.
- As consumers turn more price and cost-conscious, value-oriented shopping will become key.
- Despite being cost-conscious, consumers will not be prepared to compromise on quality and will have high quality expectations of even entry-level price tiers.
- Eating out will remain challenging as the restaurant industry will be impacted so consumers will look for more excitement in their grocery shop
- There will be more focus on healthy, nutritious, and organic foods
- Sustainability will remain a major concern with consumers prepared to support more sustainable, responsible, and environmentally conscious brands.
- Convenience, flexibility, and accessibility will drive consumer shopping habits so online deliveries and good service will become critical.
- Technology will become a key differentiator in efficiency and the sector will see more automation in areas such as warehousing and supply chain logistics.
- Better quality data management and advances in consumer analytics means greater choice, personalisation, and customer relationship building opportunities.
