Small formats added the most new units, while big supermarkets opened the most square feet.
January 25, 2023
The year 2022 for grocery retailers can best be categorized as continued momentum from 2021, but with added headwinds in the form of record inflation. The year was marked by an array of challenges and changes.
Momentum has swung back in favor of dining out, as restaurant retail sales outpaced grocery spending in 2022. Contrary to consumer reports of eating out less often due to rising food prices, data from the Census Bureau reveals that restaurant and bar spending saw a 14.1% year-over-year increase. This suggests that although consumers may be visiting restaurants less often, they are spending more per transaction.
Obstacles such as inflation and continued supply chain uncertainty have caused grocery retailers to heighten their focus on loyalty programs and new store formats.
More food shoppers have returned to shopping in store, which has caused e-commerce grocery sales to taper. However, retailers continue to invest heavily to establish their own online platforms or partner with third-party grocery delivery players.