Online shopping, delivery and subscription models, and cannabis retail sales are all likely to play a role in helping small local grocers to reach a wider customer base and provide more flexibility and convenience during the forecast period. Cannabis retail sales are still far from maturity and, therefore, could have a significant impact on the performance of small local grocers during the forecast period.
One bright spot for traditional grocers is the growing popularity of supporting local food producers and businesses. Many consumers are becoming more aware of the environmental and social benefits of buying local food, such as reducing greenhouse gas emissions, supporting local farmers and communities, and enhancing food security and quality.
One major threat to growth will come from competing channels such as supermarkets and convenience stores, which are expanding their offerings in terms of products on the shelves and services like delivery and pick-up. One good example is the growing involvement of these stores in the alcoholic drinks business, which will challenge the current dominance of alcoholic drinks specialists.
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Small local grocers are mostly independent retail outlets (with a selling space of under 400 square metres), kiosks, market stalls or street vendors, owned by families and/or run on an individual basis, and with a primary focus on selling food/beverages/tobacco and other groceries. Small local grocers also includes ethnic grocery stores that specialize in foreign brands and food types, health food stores, confectioners/newsagents/tobacconists (CTNs), food & drink souvenir stores, legally registered mobile shops that are run out of a truck, and regional specialty stores. Retail sales from farmers markets, farms, vineyards, or similar producers are also included in small local grocers. Outlets located within wet markets in Southeast Asia (often located in government-owned multi-story buildings) should be counted as separate outlets.
See All of Our DefinitionsThis report originates from Passport, our Small Local Grocers research and analysis database.
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