Grocery-anchored retail centers continued to be an attractive property type for investors in 2017, with sales volumes increasing by 5.3 percent, according to JLL’s Grocery Tracker 2018 report. Here are grocery trends JLL says to watch in 2018:
Smaller and more focused stores:
Smaller footprints have more opportunities in urban locations and in mixed use projects. Grocers like Aldi and Trader Joes benefit from the flexibility to take smaller spaces in vertically integrated projects.
Data driven technology:
As shoppers demand more digital integration, retailers have new access to unprecedented amounts of data. This data will provide greater efficiency in operations and enhanced customization of products for consumers.
For the grocery industry, blockchain has the capability of improving food safety, allowing products to be recalled more quickly, and improving inventory management.
Partnerships and consolidations:
The acquisitions with the greatest implications will occur between grocers and non-grocery companies, like Kroger’s potential partnership with Ace Hardware.
Walmart is expanding Scan & Go mobile checkout to 100 more stores and Kroger’s Scan, Bag and Go will be in 400 stores in 2018.