Inflation, supply chains, and hiring among chief concerns for grocery retailers, survey

Grocery retailers face a number of challenges in an evolving landscape where shopper expectations are of critical importance. But grocers also face the challenge of inflation having an outsized impact on their business with margins being extremely thin.

Retail optimization company Relex surveyed more than 105 grocer retail professionals, and found that more than half (58%) of grocery retailers identified inflation causing price pressure as their biggest problem.

• That was followed by hiring, training, and retaining a workforce (47%), and maintaining on-shelf availability because of supply constraints (43%).

Over the next 12–18 months, grocers are most concerned about collaboration with suppliers and CPG partners (55%), increasing their profitability through online channels (52%), and optimizing their supply chains (46%).

“As supply chain uncertainty continues to loom, the relationships between retailers and consumer goods companies are becoming critical. Customer engagement within online channels continues to grow, and limited supply requires more transparency across the supply chain network to keep shelves stocked,” the report states.

Nearly three-quarters of respondents (74%) said that fresh food products are important or very important to their businesses. The report said that issues like maintaining a strong workforce and supply chain are particularly important for grocers that rely on fresh foods because inefficiencies can cause higher rates of spoilage, out of stocks, and, in turn, reduced customer satisfaction.

• More than half (54%) said that spoilage from fresh food products accounts for 1.5% or less of yearly revenue.