1、Retail PracticeThe state of grocery in North America 2023Grocery executives face a host of new challenges,including flat growth and margin pressure.Five trends could point the way to renewed momentum.September 2023This article is a collaborative effort by Bill Aull,Prabh Gill,Dymfke Kuijpers,Nancy L
2、u,Eric Marohn,and Griffin McLaughlin,representing views from McKinseys Retail Practice.SDI Productions/Getty ImagesThe state of grocery in North America 2023After a tumultuous 2022,grocery executives hoped rampant inflation and snarled supply chains would soon recede,signaling the return to a more t
3、raditional landscape.In some ways,they got their wish:inflation has fallen significantly,and supply shortages have moderated.Yet the lingering effects of these trends and consistent pressure on margins have dampened the outlook.Leaders may be wondering when the days of greater predictability and hig
4、her profits will return.Despite their weariness,CEOs should be prepared to act aggressively.As we have discussed in years past,the best-performing grocery retailers are those that consistently focus on innovation and pursue new ways to create value.1 Indeed,the very constraints that keep executives
5、up at night also contain the seeds to jump-start growth,diversify revenue streams,and achieve greater operational performance.Our research and analysis identified five trends that hold the key to thriving in 2023 and beyond(see sidebar,“About the research”).They include stronger private-brand offeri
6、ngs and promotions,an elevated omnichannel experience,broader business diversification,the integration of generative AI,and sustainability as a driver of top-and bottom-line results.Grocery retailers that integrate these insights could be better positioned to meet consumers where they are and provid