2022 holds big growth opportunity for supermarkets, if they can create the the fast, frictionless experiences shoppers demand
The grocery industry has witnessed more change in the past two years than perhaps the entire previous decade. COVID has upended how consumers live and shop, and retailers have responded with amazing speed and efficiency to keep up with all of the changes.
But there’s no rest for the weary. There’s more evolution to come in the year ahead. What can we expect to see in 2022? Supermarket News senior editor Russ Redman and executive editor Michael Browne have some predictions for the year ahead.
Online will represent more than 15% of grocery retail sales in 2022, up from around 10% at the end 2021.
Food-at-home spending will increase through the first half of 2022, as COVID concerns, inflation and high restaurant prices push consumers to grocery stores.
To drive omnichannel synergies in grocery, Amazon will more than double the number of Amazon Fresh supermarkets in 2022 (there were 22 in six states and D.C. as of Dec. 7, 2021).
Shoppers will expect skipping the checkout line — via frictionless payment solutions like scan-and-go, smart shopping carts and technologies like Amazon’s Just Walk Out — to become a daily option at large chain grocery stores.
Private-label market share will increase in 2022 as grocers boost exposure of own brands on their digital properties.
Grocery retailers and distributors will accelerate the rollout of automated micro-fulfillment centers (and similar facilities) to support elevated online demand and achieve e-commerce profitability.
The first omnichannel grocery store prototypes — incorporating features like automated picking areas, expanded perimeter and reduced center-store spaces, customer pickup counters, self-serve order collection, ordering kiosks and more drive-up options — will debut in major markets.
As grocers gain “share of stomach” from restaurants, supermarkets will see big growth in prepared meal services, both in-store and online “order ahead” offerings.
The plethora of online-only grocers offering ultra-fast delivery (10 to 15 minutes) will thin out in the latter part of 2022 as major brick-and-mortar grocers expand their rapid delivery services and build out omnichannel ecosystems in major metro markets.
Big grocers will increasingly add popular retail and consumer brands — in such categories as apparel/accessories, electronics, home/office supplies, housewares, health/fitness, beauty and baby care — via digital marketplaces and store-with-a-store departments.
