As the year draws to a close, the twists and turns keep coming. And in a sense the conditions for the grocery sector continue to be benign. But it sure doesn’t feel like that. On the supply side, there have been restrictions to cope with, labour, raw material and product shortages, amid new red tape and government delay, not to mention soaring inflation and increasing industrial action to manage. And amid the u-turns, with the country in and out of lockdowns, often at short notice, it’s been hugely challenging to manage the fluctuations in demand as well. And hanging over the industry are staff health & wellbeing issues, amid absences, illness and bereavement.
So it’s a huge credit to the sector that it’s by and large kept delivering the goods this year. True, sales have unquestionably been lost due to driver shortages and other supply issues, particularly during the pingdemic in the mid summer.
But at least £3.8bn extra sales have gone through the various grocery channels – whether that’s online, in supermarkets and convenience stores, or increasingly, via new rapid delivery models – and 58 of the 112 grocery categories in The Grocer’s Top Products Survey are once again in growth.
And once again the industry has risen to the numerous challenges with aplomb. Far from merely coping, retailers, wholesalers and suppliers have continued to identify new solutions to challenges, and to respond to new opportunities. And there’s also been some fabulous innovation on the product side. In our Top Products Survey we’ve identified 48 top launches. Individually these are brilliant additions to their categories. Collectively they show an industry that continues to operate on the front foot, meeting new shopper needs, while pushing the boundaries of what’s technically possible.
Read more:
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Grocery’s fastest-growing products and categories this year
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The top launch in every grocery category this year
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Grocery’s fastest-falling products and categories this year
At the same time the industry has always (or almost always) struck the right tone in its advertising. Inevitably some new habits from the coronavirus have not endured. The novelty of scratch cooking and home baking has worn off, partly as the novelty has worn off, and partly because, as the country has tentatively opened up, there’s less time. As a result some categories have been unable to sustain growth. But there’s no shame in that.
One permanent change in the market, however, is the explosion in delivery options and services. Shopper choice is now better than ever, with online supermarkets stepping up once again in time for Christmas, but also direct to consumer businesses and increasingly, rapid delivery models supplying goods to the shopper’s doorstep in as little as 10 minutes. To be expanding choice and increasing speed of service in the midst of everything else that’s going on is astounding.
But the industry cannot afford to relax for one second. As well as the emergence of Omicron, a new and potentially dangerous Covid variant, there are new pressures on the sector, including new and onerous environmental and health-based legislation, and further threats to the resilience of supply chains from new Brexit processes.
The food sector is in a whirlwind right now, with obstacles flying in all directions. But one thing is for sure: among the chaos and confusion, grocery retailers, wholesalers and suppliers are doing their level best to plot a path through it all.
Please note this is our final print issue of the year. And our first issue of 2022 publishes on 8 January. But we’ll be posting news on thegrocer.co.uk up to Christmas Eve. In the meantime Merry Christmas Trading to all our readers and a Happy and Healthy New Year
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