FMI’s 2019 Analysis Will Transform the Decisions Making Processes of Food Retail Industry

Publisher: The Insight Partners

According to the Food Marketing Institute (FMI) 2019’s report, the food retail industry has been riding a number of positive trends towards growth although as it is facing a lot of unprecedented challenges.

Prior issuing the report, FMI conducted deep analysis over all the concerns of retailers that can impact their sales and profit making. Here are a few points from the FMI report that offers the food retail industry with vital operational, as well as financial benchmarks followed by the insights into the strategic & tactical decisions making processes. 

The following is the summary of issues having positive, blurry and negative impacts over the profits of the retailers:

1. Well-being, as well as food trends as medicine.
2. Altering behaviors of consumers towards food consumption: These would include alterations in terms of healthy ingestion, diet trends such as paleo & keto, several foodservices forms, augmenting private brands, meat substitutes as well as ecommerce.
3. Rising awareness for transparency amongst Shoppers’: This has emerged in recent years as having a positive impact due to food retailers’ ability to respond effectively.
4. Mixed Impact over the economies: The local as well as national economies will be influencing the food retail market both positively & negatively. As a strong economy will have consumers’ confidence up, with buyers creating more sales followed by higher revenue. On the other hand, the lower unemployment depiction and rising wage stresses in developing & under developed economies will be exerting a negative influence over food retailers.
5. Evolution in Technology: This will also have both positive as well as negative impact over the profits. Bolstering productivity and efficiency can enhance consumer experience effecting profits positively. On the other hand, leveraging evolving technologies is very expensive accompanied by steep learning curve for a number of retailers.
6. Rising Expenses in terms of healthcare and credit or debit card interchange fees.
7. Increasing Competitive landscape is making retailers anxious

Regardless of the challenges faced by food retailers, they have been continuously optimistic in terms of financial performance. More than half of retailers across the industry are of the view that their store sales will probably rise in coming year. However, nearly 31 percent expect that their profits might increase and about 39 percent anticipate online sales augmentations. Moreover, food retailers are optimistic for their amplified basket sizes nevertheless are not much certain about the frequency of shoppers.