Advantage Solutions
executive summary halfway into as much of the country is easing pandemic restrictions grocery industry players are focused on the nature of post pandemic sales optimal product pricing and assortment and return on their investments in digital commerce according to a new survey by advantage sales consumer goods insights team while product manufacturers and retailers hold significantly differing perspectives on likely sales strength in the second half of the year and where those sales will be made or in stores they are aligned in one area the transformative nature of digital commerce according to results of a may survey of grocery manufacturers and retailers by advantage sales manufacturers and retailers are far from aligned on dollar sales predictions six in manufacturers foresee increases in dollar sales through the second half of seven in retailers are predicting decreases manufacturers predict a much greater percentage of their sales moving over the next few years than retailers do while of manufacturers expect their dollar sales to be over by only of retailers believe the share of their sales being made will be that high the cost of consumer goods will continue to rise more than three fourths of manufacturers have taken price increases this year or plan to in the future retailers want sixty five percent of retailers are in the process of reducing manufacturers who are most affected are likely to lean into product innovation or promotions to regain lost distribution few retailers have plans to share their digital data this year only of retailers make their digital commerce sales data available to manufacturers now or plan to in the near future areas of focus in digital commerce are changing third party and are rising in importance with of manufacturers putting them in their top commerce priorities beyond their media spend at and target manufacturers top area of planned commerce investment encompasses basic capabilities such as content supply chain and data manufacturers believe there great room for improvement in their return on investment in retail platforms only of manufacturers believe a retail media network spend is extremely effective compared to their traditional spends with retailers regarding their overall digital spend beyond their investments in only commerce related investments with target and received extremely or very effective ratings by more than one third of manufacturers contents projecting sales and price increases reducing assortment and increasing fill rates investing in digital commerce and seeking roi methodology outlook june is based on responses by consumer packaged goods manufacturers and grocery retailers to surveys conducted may through may the survey and insights are products of advantage sales consumer goods insights team | Advantage Solutions
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Industry
Deck date
June 2021
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