Retailers Flag Supply Chain, Inflation Challenges, But Remain Upbeat On Key CategoriesNovember 17, 2022
The U.S. retail tier is wary of ongoing supply chain impacts and possible consumer downtrading due to inflation, but expects ongoing growth for hot categories like Tequila and RTDs heading into next year, while predicting improved fortunes for segments like red wine and craft beer. The opinions were delivered in a survey of 250 independent retailers in September and October by delivery provider Drizly.
According to the survey, 43% of retailers see supply chain issues as their biggest concern for 2023, while nearly two-thirds believe high inflation has impacted their sales this year. Correspondingly, almost 60% of respondents expect consumers to opt for less expensive sparkling wines when holiday shopping this year, although 40% expect online gift orders to exceed those of a year ago across their businesses, compared with 32% who do not.
Retailers remain highly bullish on the Tequila category, evidenced by a 64% majority saying they see the Mexican spirit gaining more incremental shelf space next year than any other category. Meanwhile, 63% of retailers expect to carry more RTD inventory next year, and 49% said the same for hard seltzers. In fact, 71% of retailers reported that the surge of RTDs and hard seltzers has “permanently changed how and where they stock products.”
Other categories retailers are watching include craft beer, which 35% cited as their “top trending category for 2023,” and red wine, which many have slated for increased shelf space looking into the new year. Additionally, 54% of retailers now identify celebrity ownership as a reason to stock a given product, underscoring the impact of influencers in a market now awash in celebrity labels. Still, 71% of retailers say customer feedback remains the single biggest influence on their product stocking decisions.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.