8 trends that will shape the grocery industry in 2021
aving closed the book on one of the most tumultuous years in recent memory, grocers are now looking ahead to a 2021 filled with opportunity and uncertainty. Although the novel coronavirus pandemic that hit the U.S. last March has delivered a sales windfall to food retailers, it's unclear how consumers will respond once their communities, offices and schools open back up and they can dine inside restaurants once more. It's also unclear when, exactly, that will all happen as COVID-19 vaccines haltingly roll out across the U.S.
If 2020 was about quickly responding to a public health disaster, the theme for 2021 promises to be strategically managing their gains for long-term growth, industry experts say. Instead of retooling their supply chains to keep pace with record demand, retailers will focus more on merchandising and securing customer loyalty. Instead of racing to add e-commerce servers and delivery drivers, grocers will zero in on efficiency and make online shopping a better experience.
Here are a few of the top trends that promise to shape the grocery industry in 2021.
E-commerce gets a lot more 'seamless'
The long-forecast online grocery boom happened all at once in 2020. Now, experts say, it's time for grocers to improve their platforms and also make online order fulfillment more efficient.
Pickup, which emerged as consumers' favored e-commerce mode, is especially ripe for improvements given the high demand and the low-tech approach many retailers still take, said Tom Furphy, CEO and managing director of Consumer Equity Partners, which invests in retail technology.
“It’s a combination of ‘I’ve got products coming in and staged in the store in a way that’s more efficient’ and ‘I’ve got technology that allows them to pick through that more efficiently,’” he said.
