Traditional grocery stores are starting to disappear

By 2021, the number of traditional supermarkets will decrease by 24.6%, but stores that offer fresh format, limited assortment, and super warehouse formats will see double-digit growth, according to “Future of Food Retailing 2017,” a recent study by consultancy Inmar Willard Bishop Analytics.

The report also cites that dollar share for the traditional grocery channel will reach 44.4% (an increase of 0.2%) by 2021, and that shares for nontraditional grocery will drop 0.7% to 39.1%. The convenience store channel will have a slight increase in shares, reaching 16.5%. Grocery e-commerce, led by millennials, will grow exponentially as food retailers adopt it faster than other retail sectors have done previously.

“The key to building market share and increasing loyalty requires one thing: relevancy,” according to the report. “Assortment, merchandising (in-store and online), pricing, promotions, and services must all be relevant in order to influence shopper behaviors. Missing the mark in one or two areas will likely result in more ‘channel hopping,’ which further diminishes loyalty.”

Report (pdf)