The recently released Top of Mind Report 2024 from Lumina Intelligence reveals that current trading conditions are among the most challenging they have been in the past 15 years for grocery retail and eating out businesses. Despite these difficulties, industry professionals are cautiously optimistic about future growth, thanks to easing cost of living pressures, falling commodity prices, and a gradually recovering economy. The report highlights three key trends shaping the landscape in 2024: ongoing labour cost challenges, an emphasis on operational efficiency, and a renewed focus on conscious consumerism.
Trading Conditions Among the Most Challenging in 15 Years
Over 80% of business professionals in the grocery and hospitality sectors report that current trading conditions are highly challenging. This marks one of the toughest periods in the last 15 years, according to Lumina Intelligence’s findings. Despite these difficulties, there is growing optimism for the future, driven by the stabilising cost of living, a decline in commodity prices, and signs of economic recovery.
Labour Costs Pressuring Businesses to Seek Efficiencies
Labour costs remain a significant burden for both grocery and eating out businesses, with 57% of eating out and 47% of grocery professionals citing it as a top concern. In response, over half of the surveyed businesses have implemented efficiency measures to cope with rising costs. As the UK government continues to prioritise policies aimed at making work pay, businesses are increasingly focused on boosting productivity and finding cost-effective solutions to remain competitive.
A Renewed Focus on Conscious Consumerism in 2024
After a dip in investment during the height of the cost-of-living crisis, businesses are refocusing on sustainability and healthier eating trends in 2024. Conscious consumerism is regaining momentum, with operators shifting their attention to local and regenerative farming practices and reducing food waste. These trends are expected to play a pivotal role in shaping consumer choices and business strategies over the coming year.
“The findings in our 2024 Top of Mind Report show a sector that remains resilient in the face of significant challenges,” said Katie Gallagher Insight Lead at Lumina Intelligence. “Businesses are adapting to labour cost pressures by enhancing efficiency, and the renewed focus on sustainability reflects a long-term commitment to aligning with consumer values.”
