Due the actual macroeconomic events, grocers major concerns are:
- Inflationary pressure, prices of supplies have soared up creating margin pressure on grocers
- Post-Covid Impact, unpredictable post-pandemic reversion to brick and mortar stores by customers have resulted in increased ordering and inventory management costs for grocers
- Excess inventory, unpredictable customer demand combined with reduced consumer spending has led to excess inventory
- Labour challenges, most of the grocers have observed shortage of skilled labour across markets
- Reduced purchasing power, due to tighter budgets of customers and low switching costs, grocers find it difficult to maintain market share in competitive categories
- Supply chain constraints, logistics operations have become costly as a result of high energy prices and labor shortage
- Shift in consumer shopping and eating habits, customers are less willing to spend outside, they prefer to save by following sustainable food-at-home trend during inflationary times
- Rising energy costs, fuel and natural gas prices have contributed to pressure on margins