How can grocery retailers navigate change in shoppers’ purchasing patterns?

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Following the 5.5% drop in sales over the last month, it is clear that supermarkets are feeling the pressure of the cost of living crisis. With food prices predicted to surge 15% this summer, consumers are already spending smarter on their weekly necessities, opting for cheaper frozen and canned alternatives that have a longer shelf life.

As consumers look for the cheapest items, simply increasing prices is no longer an option. Grocery brands need to look at how to optimise their profit per square foot and attract shoppers in new ways. We’ll see supermarkets create destinations – removing the goods that fail to produce profit and creating meaningful spaces inside their store – whether that be for an opticians, dentist, or beautician. The key will be driving footfall to these huge store spaces, making the supermarket ‘multi-purpose’.

Technology will also be a ‘lifeline’ for supermarket survival. As worldwide food supply continues to be a cause for concern, supply and demand balance will inevitably be harder to balance. This is where AI and analytics come into play – to predict consumer trends and ensure supply to meet peaks in demand for goods proving particularly popular.