Market News: Positive Grocery Industry Forecasts
There's no doubt retailers, including grocery industry retailers, have seen increasing challenges over that last two years. Between higher costs of goods, supply chain challenges, and continued competition with digital commerce, retailers are looking for positive signs for the end of 2021 and into 2022.
According to two surveys by Advantage Sales, a division of Advantage Solutions:
- 60% of manufacturers and 70% of retailers forecasted higher dollar sales in Q4 2021 than the previous year
- 1/3 of manufacturers expect supply levels to top 90% of Q4 2021 and project continued growth due to improved supply
- More than 50% of retailers are expanding their fresh category offerings, with 40% gaining that space from reductions in space dedicated to tobacco and general merchandise
Two factors contributing to this forecasted growth are higher levels of in-home consumption and increased consumer spending. This is in addition to higher dollar sales from price increases, which will be the top driver of dollar sales growth during this period.
These facts should provide some confidence and direction finishing their 2022 projections and planning. Also of note in the same article are some additional important facts to know in regards to dollar sales growth.