In 2021, the total market value of grocery retailing came to approximately ***** billion British pounds (GBP) in the United Kingdom. Of the five major sales channels, supermarkets had the largest share of the market value with ** billion pounds. Supermarkets had more than twice as big a market value as the convenience channel, the second largest channel. By 2027, the value of grocery retailing is expected to increase to over *** billion British pounds. Where UK shoppers buy groceries Some 88 percent of surveyed grocery shoppers stated that they regularly shopped at supermarkets in the UK. Online retailers ranked in second place, with*** percent. Market leader Tesco held just over one-quarter of the market share of all grocery stores in Great Britain in September 2022. Together with Sainsbury's, the two retailers had a combined market share of **** percent. Tesco operated roughly ***** stores in the United Kingdom and the Republic of Ireland in 2022. With this presence the company regularly reached ** percent of shoppers according to a recent survey.

Supermarkets and grocery stores have significantly transformed in recent years, driven by technological advancements and shifting consumer preferences. E-commerce has become a cornerstone of the industry, with over 70.0% of grocery retailers integrating online ordering and fulfillment into their operations in 2025. This shift has been fueled by consumer demand for convenience and efficient shopping experiences, prompting retailers to invest heavily in curbside pickup and home delivery services. Major players like Kroger have leveraged these innovations to maintain a competitive edge, while third-party delivery platforms like Instacart have enabled smaller grocers to compete with larger chains. The adoption of "dark stores" and AI-driven technologies has further optimized operations but heightened competition has limited revenue expansion. Over the past five years, revenue has been slipping at a CAGR of 0.1%, reversing course in 2025 to climb 1.1%, reaching $883.1 million. Over the past five years, the industry has faced rising labor costs and competition from discount grocers and private-label products. Automation has played a crucial role in managing these pressures, with more than 50.0% of transactions in major chains processed through self-checkout systems in 2025. Despite these advancements, wages have continued to rise, accounting for an estimated 10.7% of revenue. This has led retailers to focus on strategic pricing and the promotion of high-margin private-label products to sustain profit. The proliferation of discount grocers like Aldi and Lidl has intensified competition, forcing traditional supermarkets to innovate and adapt to retain market share. Looking ahead, supermarkets and grocery stores are likely to endure steady but marginal revenue growth over the next five years, influenced by economic and demographic factors. Increases in per capita disposable income and consumer spending suggest a stable economic environment that could bolster sales of premium and specialty grocery items. However, declines in the agricultural price index may pressure revenue growth, as lower prices could reduce sales value. Urban population growth will continue to drive demand for grocery products, encouraging retailers to adopt urban-centric strategies. Upcoming FDA regulations on product labeling and ongoing geopolitical tensions will present challenges and opportunities for the industry. Retailers that can navigate these complexities and align with evolving consumer preferences, such as the rise of functional foods and the "quiet luxury" trend, will be well-positioned to thrive in a rapidly changing market landscape. Revenue is anticipated to expand marginally over the next five years at a CAGR of less than 0.1%, totaling $883.3 million in 2030.

Supermarkets and grocery store outcomes have been a tale of dealing with volatile prices at their purchase and sales points. The continued expansion of Aldi and Amazon has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on both the physical store and online service fronts. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with convenient locations and expanded online shopping capabilities. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes. The ACCC and Treasury have taken the lead on addressing supplier and customer concerns relating to deceptive discounting practices and supplier contract bargaining exploitation. Supermarket and grocer revenue rose significantly following the COVID-19 outbreak. Household expenditure shifted towards retail industries amid restrictions on many services industries, with this imbalance remaining as high costs limit eating out. A combination of panic buying, along with the suspension of many specials and promotions in supermarkets, boosted grocery turnover at the beginning of the period, spiking revenue for 2019-20. This high benchmark at the start of the period has resulted in an industry correction and an annualised revenue decline of 0.6% to $148.7 billion over the five years to 2024-25. However, stores have largely managed to pass on upstream costs to customers, steadying their profit margins while suppliers and consumers bear the brunt of inflation-driven costs. Revenue is estimated to climb by 0.2% in 2024-25, reflecting the price-driven industry growth more indicative of the overall revenue trend that was drowned out by the pandemic revenue spike and correction. Supermarkets and grocery stores are set to continue performing well with industry revenue slated to climb at an annualised 0.4% over the five years through 2029-30 to $142.8 billion. Population growth and stubborn inflationary pressures, despite rate hikes, are set to keep store prices inching upwards. The results of the Treasury and the ACCC's investigations will shine a light on new regulations and potential penalties in store for large supermarkets. Eventually, when inflationary pressures subside and consumer sentiment returns to a positive level, supermarkets and grocers will be well-positioned to take advantage of consumer appetite for value-added and premium goods. Strong growth in online sales is set to continue.

The Supermarkets industry has undergone something of a shift over the past decade – discounters Aldi and Lidl have penetrated the customer base of the traditional “Big Four” supermarkets (Tesco, Sainsbury’s, Asda and Morrisons), with their low prices and improving quality of products resonating with price-conscious shoppers. Over the five years through 2024-25, supermarkets' revenue is forecast to dip at a compound annual rate of 1.1% to £192.1 billion, though it's expected to inch up by 0.6% in 2024-25. Grocery price inflation has eased in 2024-25, with this stabilisation supporting consumer confidence, which has sparked greater sales volumes across major supermarket chains. Over the five years through 2024-25, the cost-of-living crisis has constrained households’ budgets, with shoppers spending less on non-essentials, shopping around more and turning to discount supermarkets. The landscape for UK supermarkets has been characterised by intense competition and emerging consumer trends. Discount retailers like Lidl and Aldi have aggressively expanded their market presence by capitalising on streamlined supply chains and low operational costs, enticing budget-conscious shoppers. Their success has prompted traditional supermarkets to embark on price wars and promotional strategies like Aldi price matches, illustrating the sector's dynamic nature. Concurrently, loyalty programmes have proven instrumental in bolstering supermarkets' profitability. Tesco, for instance, reported exponential growth in its Clubcard membership, thereby solidifying its market share. Looking forward, consumer preferences for quick and convenient shopping will threaten the traditional weekly shop. Convenience stores are likely to benefit from the little, local and often trend, stealing sales away from supermarkets. Sustainability is a growing concern for both shoppers and supermarkets. As disposable incomes recover, shoppers will emphasise sustainably produced, sourced and packaged products. Supermarkets will invest heavily in decarbonising their operations by purchasing electric fleets. However, additional costs caused by hikes to employers’ National Insurance contribution outlined in the 2024 Autumn Budget will force supermarkets to pass on additional costs to consumers, threatening their price competitiveness. Over the five years through 2029-30, supermarkets' revenue is forecast to swell at a compound annual rate of 2.1% to £213.4 billion.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

Coles and Woolworths’ high market share has raised the risk of exploitative business practices. AU profit compared with UK and US data paints the most accurate picture.

The statistic illustrates the sales value market share of Seiyu supermarkets in Japan's grocery retail sector from 2011 to 2015. In 2011, the sales share of Seiyu grocery retailers amounted to 1.5 percent. This number stayed the same during the measured period.

The paid membership supermarket market, while exhibiting significant growth potential, faces a complex landscape. The market size (XXX), with a CAGR of XX%, and a value of unit million, demonstrates substantial expansion, driven primarily by increasing consumer demand for convenience, value-added services (like exclusive discounts and priority access), and the growing popularity of online grocery shopping. Key trends shaping this market include the integration of technology (e.g., advanced inventory management, personalized recommendations, and seamless omnichannel experiences), the rise of private-label brands offering competitive pricing, and a heightened focus on sustainability and ethical sourcing. However, the market faces significant restraints including intense competition from established players like Walmart Inc., Costco Wholesale, and Carrefour, who are aggressively expanding their membership programs. High initial membership fees can be a barrier to entry for price-sensitive consumers, while operational challenges associated with managing inventory and logistics for both online and offline sales (segmented by application) across diverse product types (own and purchased products) significantly impact profitability. Geographic variations also exist, with North America and Asia Pacific (particularly China and India) representing key growth regions due to high population density and rising disposable incomes. The competitive landscape includes a mix of large multinational corporations and regional players, highlighting varied business models and customer acquisition strategies. The market segmentation by product type (own vs. purchased) reveals distinct competitive dynamics. Companies like Costco excel with their own-brand products, achieving high profit margins while offering competitive pricing. Conversely, supermarkets offering a broader range of purchased products face tighter profit margins and are more susceptible to fluctuating supplier costs. Regional variations further complicate this picture, with consumer preferences and regulatory environments differing significantly across regions like North America (with a focus on convenience and speed), Europe (with an emphasis on sustainability and quality), and Asia Pacific (characterized by diverse consumer segments and rapid technological adoption). The study period (2019-2033), encompassing the historical (2019-2024), base (2025), and forecast (2025-2033) years, provides a comprehensive overview of market evolution. Successful players in this sector must effectively manage their supply chains, leverage technology for personalized experiences, and cultivate strong brand loyalty to overcome the challenges posed by high competition and consumer price sensitivity. The inclusion of players like Wumart Stores, Fresh Hema, and Yaodi Agricultural in the analysis indicates the significant presence of regional players particularly in the Asian market, each possessing unique strengths and strategies within their respective geographical markets.

AEON stock price, live market quote, shares value, historical data, intraday chart, earnings per share and news.

The global grocery retail market, valued at $262.64 billion in 2025, is projected to experience steady growth, driven by several key factors. The market's Compound Annual Growth Rate (CAGR) of 3.2% from 2025 to 2033 indicates a consistent expansion, fueled by increasing urbanization, rising disposable incomes in developing economies, and a shift towards convenient shopping options. E-commerce penetration is significantly impacting the landscape, with online grocery shopping gaining traction, particularly among younger demographics. This trend is compelling traditional brick-and-mortar retailers to invest heavily in omnichannel strategies, incorporating both online and physical store experiences to cater to evolving customer preferences. The market segmentation reveals a diverse landscape, with food and beverages dominating the product outlook, and hypermarkets and supermarkets holding significant market share in the distribution channel segment. Competitive pressures are intense, with major players like Amazon, Tesco, and Carrefour constantly vying for market share through aggressive pricing strategies, loyalty programs, and expansion into new geographic regions. The increasing focus on private labels, sustainable sourcing, and health-conscious product offerings are shaping consumer demand and influencing retailer strategies. The regional distribution of the market reflects varying levels of maturity and growth potential. North America and Europe are currently larger markets, but considerable growth opportunities exist in Asia-Pacific and other emerging regions. Challenges remain, including supply chain disruptions, rising inflation impacting consumer spending, and the need for retailers to adapt to evolving technological advancements and consumer expectations. Successfully navigating these challenges requires a strategic blend of innovative supply chain management, personalized customer experiences, and a deep understanding of local market dynamics. The forecast period (2025-2033) suggests that the grocery retail market will continue its expansion, although the pace of growth might fluctuate based on macroeconomic conditions and evolving consumer behaviors. Maintaining a competitive edge requires robust strategies focused on efficiency, personalization, and sustainability.

As of the third quarter of 2024, supermarkets had a 39 percent market share in the distribution of fast-moving consumer goods (FMCG) in Malaysia. This type of retail store made up the highest market share among other sales channels for FMCG in the country.

Supermarkets and grocery stores have endured a transformative journey since 2019, shaped by the pandemic, geopolitical tensions and an ever-changing market landscape. Grocers first encountered unprecedented demand as lockdowns redirected consumers' spending from entertainment to at-home essentials. Sales spiked, but the boom was fleeting; by 2021, factors like declining disposable income and soaring food prices reversed the trend. Even post-pandemic, the industry is evolving—more consumers than ever are embracing online grocery shopping, prompting traditional retailers to bolster their digital presence. Those unable or unwilling to adapt were largely forced out, while the largest supermarket chains maintained dominance through aggressive merger and acquisition activity and by leveraging vertically integrated operations. This momentous period caused heightened revenue volatility that still persists. Revenue has been rising at a CAGR of 0.1% over the past five years and is expected to dip 0.9% in 2024 when revenue will reach $111.9 billion. Amid this transformation, significant profit disparities worsened in an incredibly concentrated industry. Geopolitical instabilities like the war in Ukraine intensified supply chain disruptions, impacting costs for retailers. Rising energy prices compound this issue, squeezing profit as transportation expenses mount. Meanwhile, climate change injects further unpredictability into production costs, forcing grocers to manage these pressures by cautiously adjusting consumer prices. A class-action lawsuit against Loblaw Cos. Ltd. underscores market concentration challenges, spotlighting potential anti-competitive behaviours and their implications. This legal scrutiny, combined with governmental pressure for price transparency, could foster a more equitable marketplace. Should dominant players like Loblaw adjust their pricing strategies, it may level the playing field for smaller competitors, expanding competition and consumer choice. Over the next five years, a stable economic backdrop will support modest revenue growth for supermarkets. As disposable incomes stabilize, a return to preferred brands could uplift grocers' revenue. A more tempered rise in food prices will allow for strategic pricing decisions, providing grocers with a favourable environment for maintaining consumer loyalty. Technological advancements will be pivotal, with retailers expected to deepen investments in e-commerce and in-store technologies like AI-powered inventory management. This investment will be crucial as online grocery shopping and big-box retailers thrive. Governmental regulatory efforts may also reshape industry dynamics, offering smaller grocers a greater chance to compete by enhancing pricing equity. Continued inventory diversification reflecting health-conscious consumer preferences will likely continue, driven by rising interest in plant-based and ethical products. Retailers that navigate these shifts adeptly, leveraging both technology and emerging consumer trends, are poised to gain a competitive edge. Revenue is forecast to climb at a CAGR of 1.7% over the next five years, reaching $122.0 billion in 2029.

The online supermarket sector is experiencing robust growth, driven by increasing internet penetration, consumer preference for convenience, and the expansion of e-commerce infrastructure. The market size in 2025 is estimated at $500 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key drivers: the rising adoption of smartphones and readily available high-speed internet, particularly among younger demographics; the increasing preference for contactless delivery and home delivery services, amplified by recent global events; and the expansion of online grocery delivery services into new geographic regions and underserved markets. Furthermore, the emergence of innovative business models, including quick-commerce platforms and personalized shopping experiences, is significantly contributing to market growth. While challenges exist, such as maintaining consistent product quality and dealing with logistical complexities inherent in food delivery, the overall trajectory suggests sustained expansion. Despite the rapid growth, the online supermarket market faces certain restraints. Maintaining freshness and quality during delivery is a constant concern, requiring significant investment in cold-chain logistics and packaging. Competition remains fierce, particularly from established brick-and-mortar supermarkets expanding their online presence. Additionally, consumer concerns about data privacy and security, and the potential for higher prices compared to in-store shopping, need to be addressed to ensure continued market expansion. Segmentation reveals a vibrant market landscape, with packaged foods currently dominating the market share, but fresh foods rapidly gaining traction. The business customer segment is showing impressive growth, fueled by the increasing reliance on online ordering for restaurants, hotels and other businesses. Key players such as Tesco, Sainsbury's, Bigbasket, and Amazon (implied by the presence of similar companies) are fiercely competing through various strategies including price competitiveness, loyalty programs, and targeted marketing campaigns. Geographic expansion continues to be a key focus, with regions like Asia-Pacific demonstrating particularly strong potential for growth driven by rising middle-class populations and increased smartphone adoption.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

Grocery Inventory and Sales Dataset

Dataset Overview:

This dataset provides detailed information on various grocery items, including product details, supplier information, stock levels, reorder data, pricing, and sales performance. The data covers 990 products across various categories such as Grains & Pulses, Beverages, Fruits & Vegetables, and more. The dataset is useful for inventory management, sales analysis, and supply chain optimization.

Columns:

• Product_ID: Unique identifier for each product.
• Product_Name: Name of the product.
• Category: The product category (e.g., Grains & Pulses, Beverages, Fruits & Vegetables).
• Supplier_ID: Unique identifier for the product supplier.
• Supplier_Name: Name of the supplier.
• Stock_Quantity: The current stock level of the product in the warehouse.
• Reorder_Level: The stock level at which new stock should be ordered.
• Reorder_Quantity: The quantity of product to order when the stock reaches the reorder level.
• Unit_Price: Price per unit of the product.
• Date_Received: The date the product was received into the warehouse.
• Last_Order_Date: The last date the product was ordered.
• Expiration_Date: The expiration date of the product, if applicable.
• Warehouse_Location: The warehouse address where the product is stored.
• Sales_Volume: The total number of units sold.
• Inventory_Turnover_Rate: The rate at which the product sells and is replenished.
• Status: Current status of the product (e.g., Active, Discontinued, Backordered).

Dataset Usage:

• Inventory Management: Analyze stock levels and reorder strategies to optimize product availability and reduce stockouts or overstock.
• Sales Performance: Track sales volume and inventory turnover rate to understand product demand and profitability.
• Supplier Analysis: Evaluate suppliers based on product availability, pricing, and delivery frequency.
• Product Lifecycle: Identify discontinued or backordered products and analyze expiration dates for perishable goods.

How to Use:

This dataset can be used for various tasks such as: - Predicting reorder quantities using machine learning. - Analyzing inventory turnover to optimize stock levels. - Conducting sales trend analysis to identify popular or slow-moving items. - Improving supply chain efficiency by analyzing supplier performance.

Notes:

• This dataset is fictional and used for educational or demonstration purposes only.
• The expiration dates and last order dates should be considered for time-sensitive or perishable items.
• Some products have been marked as discontinued or backordered, indicating their current status in the inventory system.

License:

This dataset is released under the Creative Commons Attribution 4.0 International License. You are free to share, adapt, and use the data, provided proper attribution is given.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.

European supermarkets’ revenue is forecast to grow at a compound annual rate of 4.5% over the five years through 2024 to reach €1.6 trillion. A handful of supermarkets dominate each country, with the only new entrants being well-established supermarkets looking to expand to new regions – independents struggle to grab market share from the well-entrenched stores. Soaring operating costs, driven by purchase price and wage, are eating into the profitability of supermarkets. For many supermarket executives, scaling e-commerce operations has taken a backseat as they seek to combat falling sales volumes and downtrading, with customers foregoing brands for value or own-brand products. Consumer preferences for organic produce and premium products have also been sidelined during the cost-of-living as customers tighten their purse strings. Price inflation is expected to push revenue up by 2.6% in 2024. Over the five years through 2029, supermarkets’ revenue is slated to climb at a compound annual rate of 0.9% to €1.6 trillion. As disposable incomes recover from the cost-of-living crisis, consumers will switch back to organic and premium produce will return and demand for convenient shopping experiences will intensify. Expanding e-commerce offerings will be central to many supermarkets’ strategies as they look to widen their sales channels. Investment will be required to fully automate warehouse procedures, such as with automated picking and depalletising, as will decarbonising fleets. Advances in analytics, Generative AI and automation will help minimise costs in what is already a tight operating model for many grocery retailers, giving some relief to profitability. Sustainability will move to the forefront of supermarkets’ decision-making process when they select new suppliers as green concerns continue to mount.