General Session: Consumer Trends at Retail – Inflation, Labor, E-Commerce and More!

Thursday afternoon, a panel of global thought leaders discussed the issues and trends impacting the fresh produce industry. Here are some key takeaways from the experts, and some trends to look for.

Consumer trends

With more people cooking at home during the pandemic, retailers are focusing on offerings that are ready to heat, eat, and cook. Convenience is key, and retailers are looking to provide solutions as they don’t see this behavior shifting anytime soon.

• 1 in 2 millennials are looking to make changes to their diets after COVID. We hear about “food as medicine,” and quality products are key here. Additionally, organics are a growing market with this thought process.
• As workers return to the office, they’re buying for need (ie, work lunches), and aren’t making frivolous purchases like they were in the early days of the pandemic.
• E-commerce is a $780 billion industry growing at 15-20% per year. While online grocery has had a huge boost over the last few years, foot traffics has also improved in stores. Brick and mortar store are still just as important.
• Growing through social media: Followers are receiving information on what’s good or not, and this drives their short-term awareness and long-term education. You can’t afford to ignore the education opportunities you provide through social media! Just remember that individuals are at different stages in their lives, and so Baby Boomers will have a different set of shopping priorities than Gen Z.

?Economics/Inflation

Consumers are concerned about inflation, and the war has impacted the supply chain, forcing Western countries to shift from their reliance on Russian oil, gas, and agriculture. What’s a retailer to do?

• It’s likely that the inflation will last until the end of 2023, so a more challenging consumer environment should be expected as they find themselves making new purchasing decisions.
• However, it’s been a positive for retailers because they are present to meet customers’ needs and have already been doing so throughout the pandemic. The toilet paper shortages have ended, and pandemic-related supply chain issues have subsided.
• The shift from national brands to private brands will surface. This has been seen with consumers buying whatever a store had in stock. This has been one of the trade-offs to inflation.

?Labor

Labor has been reversing in a positive direction and it will continue to grow. Plan ahead now for the staff of tomorrow.

• Companies must focus on retention in order to build a strong team. Get to know your associations and what they stand for – you want to be an employer of choice!
• There are still 10 million unfilled positions in the United States, and long lead times for equipment to make its way to distribution centers. However, the timing of shelving products is close to normal, showing how well retailers and producers have built resiliency into their companies over the pandemic.

The panel concluded by giving their predictions for what’s next for the fresh produce industry. Time-pressed customers will focus on the convenience factor when shopping, and the experience must be wherever the consumer is present. Not to mention, shoppers are looking for an experience, so retailers should know where they are in the customer’s journey. The future for the produce industry will have to emphasize flexibility, agility, and the need to be nimble.