ICYMI: Last week, thousands of consumer packaged goods (CPG) and grocery leaders gathered at Groceryshop 2022, including our own chief content officer Zia Wigder and analyst Andrew Lipsman.
Hear it firsthand: Here are the key takeaways and what they mean for retailers:
Talk of the town: Retail media was this year’s biggest trend, hands down.
Our take: US digital retail media ad spending is exploding; it will reach $40.81 billion this year, more than triple its pre-pandemic total. And everyone is getting in on it, from Kroger and Best Buy to Walmart and Sam’s Club. Trust us, this is just the tip of the iceberg.
Making it easy: Grocery retailers and CPGs remain hyper-focused on convenience.
Our take: People may say “convenience is king,” but price is sitting right alongside it on the throne. If costs continue to rise, many consumers will be trading convenience for a lower price point. But higher-income households may be willing to shell out for an easier shopping experience.
Breaking even: Ecommerce can be profitable in grocery but still depends a lot on click and collect.
Our take: Digital grocery sales in the US are slowing but continue to represent a larger chunk of all grocery sales. Retailers must continue incentives to drive more dollars online, possibly through options like free delivery or rewards programs.
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
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