Reducing expenses on food remains a top priority for consumers across all income groups, as found by the study "The 2024 Grocery Retail Industry," conducted by Stout Found and cited by European Supermarket Magazine.

Private Labels Increasingly Valued

Updating data from 2023 in the food retail industry by global consulting firm Stout found that private label and discounted products have maintained their popularity among shoppers as they continue to save money.

The significance of an engaging and technology-based shopping experience continued to grow, especially among younger demographic groups, indicating that they are looking for destinations, not just stores.

Nearly three-quarters (75%) of Generation Z and Millennial shoppers have used a grocery store app in the past year, the data shows.

Other Findings

Labor shortages emerged as the biggest challenge facing the food retail industry, according to the executive directors surveyed in the study.

At the beginning of 2023, about 44% of frontline retail workers were considering leaving their jobs, but this rate significantly decreased in the second half of the year.

Rising labor rates have prompted retailers to explore cost-saving investments, from self-checkout lanes to fully automated cashier-less stores, according to the report.

Retailers have also expanded their product assortment to meet consumer preferences, including increased demand for private label, plant-based, organic, and healthier options.

Food Waste

With reducing food and packaging waste a top priority for both consumers and companies, grocery stores and CPG firms are focused on waste reduction.

Apps like Too Good To Go have gained popularity among consumers, restaurants, and food retail stores as they have helped combat food waste in a seamless, cost-effective manner, the report states.

Vulnerable to Disruption

A separate study by AlixPartners found that the retail sector is the most vulnerable to disruption among ten major industries.

AlixPartners’ Disruptive Index surveyed 3,000 executive directors worldwide, collecting responses across ten different industry sectors.