Despite supply chain and inflation challenges, November-December 2021 holiday U.S. retail food sales surged 14 percent over 2020 to reach USD 886.7 billion (EUR 777.5 billion), according to new National Retail Federation data.
Grocery and beverage store sales also hiked up 8.6 percent in November and December, according to U.S. Census Bureau data.
“We closed out the year with outstanding annual retail sales and a record holiday season, which is a clear testament to the power of the consumer and the ingenuity of retailers and their workers,” NRF President and CEO Matthew Shay said in a press release.
Despite supply chain problems, rising inflation, labor shortages, and the COVID-19 omicron variant, retailers “delivered a positive holiday experience to pandemic-fatigued consumers and their families,” Shay said.
Holiday spending during 2021 reflected “continued consumer demand that is driving the economy and should continue in 2022,” MRF Chief Economist Jack Kleinhenz said, while issuing a warning about potential oncoming headwinds.
“Nonetheless, we should be prepared for challenges in the coming months due to the substantial uncertainty brought by the pandemic,” he said.
Online and other non-store sales also rose through the November-December holiday period, up 11.3 percent year-over-year, according to NRF. In December, online grocery sales reached USD 8.9 billion (EUR 7.8 billion), according to a new Brick Meets Click/Mercatus Grocery Shopping Survey, with more than 69 million U.S. households shopping online to satisfy their grocery-related needs.
And December’s strong results pushed online grocery sales to USD 97.7 billion (EUR 86 billion) for 2021, as more than 70 percent of U.S. households (93 million) received one or more orders during the year.
However, only 3 percent of consumers surveyed by IRI in December believe they will buy all their groceries online in the next month, according to 210 Analytics.
“This compares to 69 percent who believe they will buy everything in store, leaving 28 percent who will just purchase some items online. This signals a likely continuation of mixed format shopping for 2022 for many people,” 210 Analytics Principal Anne-Marie Roerink said.
The state of online grocery underscores not only the need for grocers to compete online for sales, but also “the imperative to develop and implement more sound strategies that improve profitability as sales growth becomes more challenging,” Mercatus President and CEO Sylvain Perrier said.
“In this regard, putting customer satisfaction at the center of the shopping experience is paramount and requires implementing an operational process that is not only efficient for the retailer but also caters to customers’ demand for quality and convenience,” Perrier said.
Photo courtesy of Syda Productions/Shutterstock
