4 Business Opportunities for Grocers; 2023 Review, 2024 Outlook

Grocery Doppio’s December scorecard reveals 69% of all grocery sales were digitally influenced constituting 926 billion dollars in grocery sales with 13.1% being digital transactions. Towards 2024, grocers are optimistic, driven by a 4.1% increase in the average basket size, reaching $168. 57% of grocers anticipate a positive 2024, eyeing key business opportunities such as scaling retail media (81%), enhancing personalization (76%), improving profitability (64%), and refining price and promotions strategies (64%). Grocers are seizing control of third-party apps, evidenced by a 13% drop in usage share in 2023 compared to 2022. 

Shopper Focus Areas in 2024

Shoppers, as they embark in 2024, emphasize family and wellness, with 64% intending to increase family dining outings and 23% aiming to enhance their organic produce purchases. The omnichannel shopping trend is set to grow, with 86% planning to shop both in-store and digitally, and 17% intending to use pickup services more than in 2023.

Steady Discounting Trends

Regarding pricing, grocery costs increased by 1.3% in 2023; a marginal 1.2% increase is expected in 2024. Shoppers, driven by a focus on savings, face conscious decisions between staples and private brands. 83% prioritize savings, seeking discounts and promotions, with 69% expressing a preference for multi-buy deals (e.g., 2 for $5) over other discount options. As the new year unfolds, balancing quality and affordability will remain a key consideration for shoppers. Meanwhile, 74% of grocers expect shoppers to prioritize discount promotions in 2024.