Nearly all (95 percent) food retailers with ecommerce options saw an increase in online sales in 2020 as a result of pandemic-related changes in consumer shopping behaviors, according to FMI’s new research report, The Food Retailing Industry Speaks 2021. In addition, consumer demand for groceries increased by 50 percent last year, resulting in 15.8 percent growth in same-store sales.
However, retailers are dealing with unprecedented supply chain and labor challenges. Eighty percent of retailers said that difficulties in attracting and retaining employees are negatively impacting business, and 42 percent said the same about supply chain disruptions.
“The pandemic transformed almost every aspect of the food retail industry – from the way consumers shop for groceries and consume their meals to how food is grown, produced and transported to supermarket shelves, to our ability to staff our stores and serve our communities,” said Leslie G. Sarasin, president and CEO of FMI, in a statement. “Throughout the past year and a half, the food retail industry has been adapting to meet the shifting needs of the communities they serve. This year’s Speaks report outlines the resilience and transformation of the food retail industry amid the COVID-19 pandemic and examines the proactive strategies and investments retailers have made to adapt to the changing food retail landscape.”
Related: Report: Vaccine, Mask Requirements Help Shoppers Feel Safe; Report: Food Industry Executives Prioritize DEI.