SignsofHopeTheStateofGroceryRetail2024–Europe–©GettyImagesContentsForewordandintroductiontotheteam3StateofGroceryEurope2024:SignsofHope6Keytrendslookingforward13Overallimplicationsforgrocers23FoodandgrocerymarketKPIs25InterviewswithfourinspirationalCEOs28Acknowledgments,contributors,andcontacts41ForewordFortheEuropeangrocerysector,2023wasallaboutinflation—again.Europeanfoodpriceinflationaveraged12.8percentin2023,reachingitshighestlevelsincetheendoftheSecondWorldWar.Whileunfavorablemarketconditionsputastrainonconsumerwalletsandmarginsarepressuredbyrisingcosts,therearesignsofhope:inflationhasstabilized,realwagesarerecovering,andfewerconsumersindicateanintenttotradedown,withsomegroupseveninclinedtotradeup.Thisreportexaminesthemostprevalenttrendsthatwillinfluencethegroceryindustryin2024andbeyond.Howcangrocersmitigatefurthercostincreasesandimprovetheirmargins?Willuptradingreturnandpropelgrocerysalesagain?Whatdoesthefutureholdforfoodtogo?Willsustainabilitytargetsbereachedontime?Whatneedstohappenforplayerstogetaheadintheonlinegrocerymarket?Howcangrocersdevelopretailmediabusinessesthatsupportprofitabilityreliably?WhereshouldgrocersinvestinAIandadvancedanalyticstoachievethehighestimpact?Finally,inaworldoftightlabormarkets,howcangroceryretailersattractandretaintherighttalentforfuturegrowth?TheStateofGroceryEuropeis...
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