Slide 1: Outlook June 2021: Grocery Manufacturers and Retailers
OUTLOOK JUNE 2021 OUTLOOK JUNE 2021 GROCERY MANUFACTURERS AND RETAILERS Forecasts and Strategies for Sales, Pricing, Assortment and Digital Commerce Advantage Sales 1
Slide 2: Executive Summary
OUTLOOK JUNE 2021 EXECUTIVE SUMMARY CONTENTS Projecting Sales and Halfway into 2021, as much of the country is easing Retailers want fewer SKUs. Sixty-five percent pandemic restrictions, grocery industry players are Price Increases................................... 3 of retailers are in the process
Slide 3: Projecting Sales and Price Increases
OUTLOOK JUNE 2021 PROJECTING SALES AND PRICE INCREASES As the cumulative effects of the pandemic on consumer demand and the supply chain come into focus, manufacturers and retailers Second-Half Dollar Sales Expectations differ sharply in their predictions for sales and where they see those sales ori
Slide 4: Manufacturers' Pricing Plans and Implications
OUTLOOK JUNE 2021 Manufacturers’ Pricing Plans Plans for Price Increases Drivers of Price Increase Informed/Will inform of price increase Increased product material costs 25% 96% 55% Increased distribution costs 92% 21% Increased packaging costs Took/Will take price increase 82% 27% Increased produc
Slide 5: Reducing Assortment and Increasing Fill Rates
OUTLOOK JUNE 2021 REDUCING ASSORTMENT AND INCREASING FILL RATES COVID-19 disruptions caused manufacturers and retailers to take a hard look at their assortments, demand and out-of-stocks, Retailers’ SKU Plans Manufacturers’ Strategies for an examination that continues to play out on physical and Mit
Slide 6: Investing in Digital Commerce and Seeking ROI
OUTLOOK JUNE 2021 INVESTING IN DIGITAL COMMERCE AND SEEKING ROI The fast shift to online grocery shopping and indications many consumers Two-thirds of retailers say a brand’s investment in their digital platforms will continue to shop this way even as pandemic-related health and safety are extremely
Slide 7: Manufacturers' E-Commerce Investments and Return on Digital Investments
OUTLOOK JUNE 2021 Outside of investments in online media spends on Amazon, Walmart and Still, beyond Amazon, Walmart, Target and Instacart, consumer goods makers Kroger, just under half of manufacturers say tier-one retail media networks, are not convinced their investments in retail platforms are e
Slide 8: Implications: Funding for Digital Investments
OUTLOOK JUNE 2021 “ Only a small fraction of manufacturers’ spending in search marketing, digital content or retail media networks is coming from new funding sources.” Manufacturers’ Funding for Digital Investments 19% 8% 21% Trade funds Only a small fraction of manufacturers’ spending in search mar
Slide 9: For more survey results and insights, contact
OUTLOOK JUNE 2021 For more survey results and insights, contact EVP, Client Services Jill Blanchard at Jill.Blanchard@advantagesolutions.net. Advantage Sales advantagesales.net | advantagesolutions.net 9