Boardroom Journal: A Decade Of Key Grocery Retail Insights

Introduction

Looking Back on a Decade of Boardroom

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In 1849 the French writer Jean-Baptiste Alphonse Karr wrote, “plus ça change, plus c’est la même chose,” which translates into English as “the more things change, the more they stay the same.” This phrase seems apropos as FMI and Oliver Wyman reflect on the past 10 years of publishing the “Boardroom” journal, with the revelation that many of the topics we’ve covered remain as relevant as ever (though perhaps not exactly the same).

After all, this is a consumer-facing industry, and consumer behavior is instinctual and spontaneous on one hand, and in many ways entirely predictable on the other. For those in the business of selling groceries, supply chain connections, merchandising and promotions, food safety, and other operational issues remain fundamental. They are always there, and they are always changing. We’ll always need smart, enthusiastic, and adaptable talent capable of handling the consistency of change to run stores and make our businesses grow. Politics is another ever-present influence that is always in a state of flux, as we’ve seen over the years when different administrations tackle matters like tax laws, labor protections, and food safety in different ways.

But along with the predictable, we’ve also experienced the entirely unpredictable — like the COVID-19 pandemic — which not only changed the world overnight but also caused repercussions we will experience for years to come. We must only consider COVID’s impact on the supply chain or the acceleration of grocers’ omnichannel strategies (as well as those of third-party delivery companies that entered the fray) to know how true this is. Through it all, we have emerged in a more resilient position, and it’s our hope that the lessons learned in “Boardroom” have helped guide leaders in their journeys. As we reflect on how we got here, let’s take a look back on a few of the key topics that framed the past decade.

Reflecting on the inaugural Boardroom journal and the evolution of grocery retail

When we first published “Boardroom”, our intention was to offer a collection of articles with unique and timely insights to help senior food retail executives shape their strategies for success and improve performance throughout their organizations. That mission hasn’t changed, but it has adapted.

In the first volume, we featured an article titled “Finding The Next Source Of Profitable Growth” in the low-margin grocery business. This remains a concern that keeps retailers up at night, although today we see companies branch out with new business models like retail media networks, which allow them to partner with suppliers and reach consumers in new ways. In another piece in the inaugural issue, “Strategies To Survive,” the authors explored the ways online retailing was allowing even small companies to reach larger, more geographically diverse audiences. This is another trend that has expanded over the years, with the more recent growth of direct-to-consumer models.

Food safety is another always-relevant topic that was featured in both the first “Boardroom” and in subsequent editions. In 2011, President Obama signed into law the Food Safety Modernization Act (FSMA), but most of the new regulations didn’t take effect until 2015. “Boardroom” was the perfect vehicle for FMI experts to share their overview of the complexities of the law.

Our priority for the last several years is FSMA’s 596-page food traceability rule, or FSMA 204, which was introduced by the FDA in November 2022, and is scheduled to be implemented by January 20, 2026. FMI maintains that this rule will burden the entire food supply chain with lot-level traceability that we believe is unworkable in the timeframe and manner FDA has outlined — and likely cannot even be utilized effectively by the FDA to improve food safety. While FMI has been working diligently with members to implement the rule by developing a variety of resources against a three-pronged strategy to include legal, regulatory, and legislative considerations, we continue to pursue critical changes through legislative and regulatory efforts. We believe this rule is reactive, and our commitment to advancing proactive food safety strategies that help protect public health has never wavered.

Examining a decade of tech innovation

Nearly every edition of “Boardroom” has covered online retailing in some form or fashion. This focus isn’t surprising, given the wealth of knowledge required to to operate more profitable businesses while anticipating consumer grocery fulfillment needs. In 2015, we featured advice on building a click and collect offering and better serving low-income consumers online. In a more recent issue, we published one of our more whimsically titled pieces, “Becoming Frenemies With Delivery Super Apps,” marking the arrival of third-party companies that were a great help during the onslaught of online ordering during the pandemic but have also become competitors.

From enduring challenges to unexpected disruptors, the last ten years have shown the power of adaptability and innovation.

Other emerging tech topics over the past decade include artificial intelligence (first discussed in 2017), blockchain, supply chain management tools (with inventory and warehouse management being perhaps the most talked about), and voice technology (called the “future of grocery” in 2016). It’s exciting to try imagining what topics we’ll be covering in the next 10 years!

Exploring key trends in grocery consumer behavior

Emerging consumer trends have been another focus in the pages of Boardroom. We’ve explored the dramatic impact of health and wellness concerns, and the ways this trend broadens the role of the typical grocery store, consumer attitudes toward sustainability, label reading, and buying local. We also wrote a more specific, generational piece touching on the subject, entitled “How Gen Z Shops And Pays” (2020). And we’ve taken a deep dive into the constantly changing nature of customer loyalty.

While it’s true that consumer behavior can be fairly predictable, we’ve definitely seen how trends of the day, accelerated by social media or otherwise, influence shoppers’ actions. Clearly, going forward, it will become even more important to learn as much as we can about shoppers and their preferences, so count on us to keep sharing insights here.

Navigating the impact of COVID on the grocery retail industry

After COVID-19 so dramatically changed our industry almost five years ago, we published a special online edition of “Boardroom” that featured timely topics including, “Why COVID-19 Communication Requires Transparency,” “The Supermarket Pharmacists’ Role During COVID-19,” and “Your Work Lives Will Not Return To Normal After the Pandemic.” These are topics that we couldn’t have even fathomed before 2020.

And in the years that followed, we continued to cover issues closely related to the pandemic — challenges such as supply chain disruption and the changing nature of the workforce.

Shaping the future of retail and consumer insights

Reflecting on the past decade, it’s safe to guess that many of these key issues will remain constant in our industry, and chances are, as scary as it may be to consider, the next big disruptor hasn’t even been imagined. But rest assured that FMI and Oliver Wyman will continue to go in-depth on the issues that matter most to you and your customers, exploring new topics when they arise. We will continue to highlight lessons learned and present high-quality research to better explain complex topics and the need-to-know details to help you remain competitive. After all, the more things change, the more they stay the same. We’re glad to be on this journey with you!

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Leslie G. Sarasin
President and CEO,
FMI — The Food Industry Association

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Mike Matheis
Global Industry Association, Civic and Economic Organization Lead Oliver Wyman