CBRE’s analysis of factors influencing the U.S. grocery industry points to a near-term future with a fully automated checkout process, a greater emphasis on prepared meals, a proliferation of smaller, convenience-store grocery outlets, and more collaboration between grocers and nontraditional partners such as fitness operators and restaurants.
A new report from CBRE, the second in its Food In Demand series this year, delivers 11 predictions for the U.S. grocery industry over the next decade. Grocery-anchored centers are favored by real estate investors due to the industry’s steady if slow sales growth and minimal e-commerce penetration relative to other categories. Still, US grocers face significant pressure to adapt to changing consumer preferences, new store formats, automation and delivery demand.
“For grocery stores to grow and compete, they must redefine the traditional footprint and offerings to meet consumers’ changing food preferences,” said Todd Folger, Senior Vice President with CBRE in Phoenix. “Stores that embrace technology, its impact on consumer purchases and the need for on-demand delivery options will have the upper hand.”