Food stores hold their ground in the online era

Despite the rapid rise of online shopping, physical stores remain a key part of the Dutch economy; including in the food industry. While non-food is clearly declining, food retail continues to grow, both in store numbers and total floor space.

Since 2010, the total number of brick-and-mortar stores has dropped by nearly a quarter. In food retail, the impact has been more limited: a net loss of 1,334 stores was offset by the addition of 600 new supermarkets and over 200 mini-supermarkets. Growth is mainly driven by larger store formats. In non-food, almost 30% of stores have disappeared.

From city center to outskirts, from non-food to food

While the total retail floor space has remained more or less stable, there has been a clear shift. Food retail expanded its floor area by 25%, largely due to the growth of supermarkets. Non-food, on the other hand, saw a 7% decline. As a result, producers and suppliers in the food sector are increasingly focusing on larger outlets in out-of-town locations, rather than smaller specialty shops in city centers.

Labor productivity under pressure in retail and wholesale

Retail and wholesale businesses are facing a tight labor market and stagnating productivity. The food sector is no exception. Technologies such as data analysis, robotics, and artificial intelligence can improve efficiency, but require investment and a willingness to change. “When it comes to retaining staff, there’s still a long way to go.”

Rabobank.nl