
The State of Grocery Retail 2023
In 2022, European grocery was characterized by unprecedented inflation and increasing consumer price sensitivity. Consumers traded down, and grocers experienced substantial cost pressure. The impact of the COVID–19 pandemic on the sector had largely concluded by the end of the year. In the second half of 2023, we expect European grocery to start recovering. Key trends that will shape the sector this year include a gradual normalization of price and volume, a search for cheaper food, continued margin and cost pressure, a race for economies of scale, profitable online growth, retail media expansion, accelerated technology deployment, and intensified collaboration of grocers with their suppliers to drive sustainability.
Download 2023 report
Download 2023 report
2023 Overview
Report
State of grocery Europe 2023: Living with and responding to uncertainty
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2022 was overshadowed by inflation. As that shadow is lifting, European grocers are gearing up for future growth by investing in private labels, retail media, automation, and sustainability.
Interview
The power of price leadership
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CEO Luís Araújo explains how Biedronka, the largest retail chain in Poland, upholds price leadership despite cost pressure by focusing on efficiency, productivity gains, and volume growth.
Interview
Convenience will always matter
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Group CEO Nina Jönsson lays out the factors that drive the continued success of ICA, the leading Swedish grocery retail chain that originated as a sourcing alliance in the early 20th century.
Interview
Pathway to successful e-grocery
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Serial entrepreneur Tomáš Čupr takes us behind the scenes of Rohlik, a fast-growing online grocer founded in 2014 in the Czech Republic that caters to affluent urban shoppers.
State of Grocery Europe 2022
Article
State of Grocery Europe 2022: Navigating the market headwinds
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Retailers must be prepared to take bold actions and keep investing in key areas such as online, new profit pools, analytics, sustainability, and people.
Interview
Trends and tribulations: An interview with Matthias Wunderlin
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Migros Supermarkets’ chief commercial officer weighs in on the Grocery retail market and changing consumer preferences.
Article
The next S-curve of growth: Online grocery to 2030
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Traditional grocery retailers should now determine which value propositions to focus on, define a scalable operating model, and consider partnerships to complement their historic strengths.
Interview
Meeting rising online demand: An interview with Ocado’s Melanie Smith
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The CEO of Ocado Retail UK discusses the evolving competitive landscape and what’s ahead for online.
Article
Instant Grocery: Will it stay or will it go?
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Retailers must determine whether they want to capture market share in instant delivery and how to further differentiate their other e-commerce propositions.
Interview
I want it now: An interview with Gorillas CEO Kağan Sümer
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Instant delivery has already made its presence felt. One of the disrupters shares his aspiration and what it will take to get there.
Article
Grocers’ sustainability opportunity in transforming the food system
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This moment of truth requires leadership from CEOs and a transformational focus throughout organizations.
Interview
Meeting the moment: An interview with Marina Caprotti
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The executive chair of Esselunga Italy discusses the latest initiatives in her organization’s decades-long commitment to sustainability.
Article
Crisis or opportunity? How grocers can build stronger people models
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A focus on the employee experience, digitalization, and reskilling can make the grocery workforce an even more valuable source of competitive advantage—if retailers invest in getting it right.
Interview
Empowering your people: An interview with Cláudia Azevedo
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Sonae’s CEO discusses why upskilling, reskilling, and a sense of purpose are critical to a high-performing workforce.
Article
Pushing granular decisions through analytics
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Advanced analytics has the potential to transform grocery operations, but many retailers struggle to harness these capabilities to improve performance. Two emerging use cases could point the way.
Interview
Analytics-fueled growth: An interview with Adam Manikowski
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Zabka’s managing director discusses the role of analytics in expansion, operational efficiency, and speed.
Article
Growing beyond groceries: The ecosystem expansion
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Grocers are in a unique position to move beyond their core retail offerings. It can be challenging to build an ecosystem, but the rewards may be worth the effort.
Disruption & uncertainty: The state of European grocery retail 2021
About the research
In its inaugural year, Disruption and Uncertainty—The State of Grocery Retail 2021: Europe marks a partnership between McKinsey & Company and EuroCommerce designed to provide executives with a comprehensive view on an industry forced to adapt at unprecedented speed. We surveyed more than 10,000 consumers and around 50 grocery executives across Europe. We interviewed six industry thought leaders and pioneers. We combined EuroCommerce’s policy and sector knowledge with McKinsey’s global expertise and analytical rigor.
Article
A year like no other for European grocery retailers: The state of the industry post 2020
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The coronavirus pandemic has reshaped the European grocery-retail landscape at unprecedented speed and scale. Five major forces at the heart of this change came together and reinforced one another.
Report
The path forward for European grocery retailers
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COVID-19 changed the market in unprecedented ways in the past months. Now evolving consumer demands also require grocery retailers to adopt new strategies to increase performance and pursue growth.
Interview
Building ecosystems around physical and online grocery offerings: An interview with Per Strömberg
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ICA’s CEO explains how the Swedish grocery retailer is expanding its physical and online ecosystem by analyzing consumer...
Article
E-commerce is shifting how European grocery retailers seek profitable growth
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Winning online was a priority for growth in grocery retail even before the onset of the pandemic. Now, with the increase in online...
Interview
Doubling online grocery capacity during the pandemic: An interview with Matthew Simister
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Tesco’s Central Europe CEO shares how the grocery chain will continue to gain market share by meeting customers’...
Article
Will brick-and-mortar supermarkets survive in Europe?
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In a fragmented customer landscape full of pandemic-related disruptions, supermarkets must adapt to remain competitive and rediscover...
37%
of consumers
of consumers
plan to look for ways to save money while grocery shopping
Interview
Sustainability and health are top of mind for today’s grocery retailers: An interview with Frans Muller
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Ahold Delhaize’s president and CEO explains how the Belgian grocer has prioritized employees’ mental health, leveraged...
Article
Value-for-money perception must go beyond price for European grocers
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The days of competing on price alone are long gone, and the value-for-money perception of many European supermarket chains has...
Article
The path forward for sustainability in European grocery retail
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Though grocers have focused on product safety and hygiene during the pandemic, sustainability remains a key priority for consumers...
Interview
Sustainability and growth go hand in hand: An interview with Mikko Helander
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Kesko’s CEO explains why the Finnish company, which has a goal of becoming carbon neutral by 2025, views sustainability...
13%
annual growth of investments in warehouse automation
annual growth of investments in warehouse automation
Speed in IT becomes a differentiator
Article
Prioritizing flexibility in tech strategies can unlock new value for grocers
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As European grocers realize that embracing new technology is core to their strategy, flexibility is the key to successful transformation....
Interview
Unleashing technology to meet shifting grocery demand: An interview with Christoph Eltze
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REWE Digital’s chairman explains how the German e-grocery leader views IT as an avenue for the company to expand its click-and-collect...
Interview
Enhancing customers’ grocery journey through digitization: An interview with Igor Shekhterman
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X5’s CEO explains how the grocery retailer is harnessing big data, AI, and digital tools to better understand what consumers...
Article
Grocers can fuel growth with advanced analytics
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Organizational maturity will be a critical element for grocery retailers seeking to unlock the full potential of analytics.
Article
Automation in European grocers’ supply chains has reached its tipping point
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Automation in grocery warehouses has significantly accelerated, thanks to several trends. Now is the time for retailers to reassess...
About the Editors
Gemma D’Auria is a senior partner in McKinsey’s Dubai office; Franck Laizet is a senior partner in the Paris office; Daniel Läubli is a partner in the Zurich office; Virginia Simmons is a senior partner in the London office and the managing partner of McKinsey’s UK and Ireland offices; Rickard Vallöf is a partner in the Oslo office; and Tobias Wachinger is a senior partner in the Munich office. Jean-Albert Nyssens is the chief economist for EuroCommerce, and Christian Verschueren is the director-general of EuroCommerce.