A Changing Retail Landscape
The food retail landscape is changing rapidly. For example, analysts predict online shopping could amount to 20 percent of all grocery spending within the next decade. Sustainability is also now a larger decision making factor for customers than ever before.
To better serve this constantly evolving industry, we must understand the most significant and impactful trends, including:
- An increasingly complex food landscape: The globalization of the food supply chain, population growth, resource scarcity and evolving food demand have created a more dynamic food landscape. Today, food companies are tasked with keeping pace with rapid changes, such as increased media scrutiny, changing regulations and societal food concerns, like animal welfare and environmental issues.
- More stringent food safety regulations: As governments adopt more stringent food safety regulations and sanctions, unprecedented compliance risks and costs are created across markets. Organizations should prepare for regulatory change and understand the impact it will have on their operations – and customers’ trust.
- Workforce changes: Labor costs already take up approximately 14 percent of grocers' average revenues, according to estimates from the National Grocers Association, and those costs are predicted to rise as more states and cities raise their minimum wages. Savvy food retailers will be inspired to innovate in response to rising labor costs, and implement strategies such as automating more non-consumer facing activities, outsourcing some labor-intensive activities and employing cutting-edge pricing and promotion techniques.
- Transparency: Consumers are increasingly demanding to know more about the food they eat. This has intensified due to a variety of issues, events and trends. Transparency drives trust, and consumers want access to relevant, clear and comprehensive information to make informed food choices.
- The boom of technology: While online channels continue to grow, new digital technologiesare penetrating physical stores to improve the shopping experience and enhance communication with shoppers. The revolution of instant ordering technology, like the Amazon Dash Button, is pushing retail boundaries and driving the development of new partnerships and innovations.
When we recognize the forces at play in the food retail industry, we can better predict how they will inform the future of food safety for both industry professionals and consumers. Learn more about Diversey’s food safety solutions here and stay tuned for the next two blogs which will highlight eight essentials for your food safety toolbox.