The food industry is implementing new strategies to modernize grocery shopping amid rising concerns about asset protection and inflationary pressures, according to FMI – The Food Industry Association’s latest annual report, The Food Retailing Industry Speaks 2024. The report reveals that while the industry has made significant strides in addressing long-standing issues like labor and transportation capacity, profit margins have regressed to pre-pandemic levels due to inflation and other financial challenges.
FMI President and CEO Leslie G. Sarasin commented, “Despite inflationary pressures, the food industry remains committed to sustainability, emerging technologies, and enhancing the in-store shopping experience.”
Key findings include improvements in supply chain resilience, with reduced impacts from transportation challenges and lower out-of-stock rates. Employee retention also saw improvements, although asset protection emerged as a top concern, with theft and fraud posing significant challenges.
Inflation and regulatory complexities have further squeezed profit margins, prompting increased investments in technologies like artificial intelligence (AI) to streamline operations and enhance customer service. Retailers are also expanding offerings of freshly prepared grab-and-go items and locally sourced foods to meet evolving consumer preferences.
For media inquiries and a copy of the full report, visit www.FMI.org/GrocerySpeaks.
