Pandemic investments cost U.S. food retailers $24 billion, FMI study finds

Nearly two-thirds of grocers expect 2021 sales declines, three-quarters project lower profits

 

Russell Redman, Supermarket News

Mar 31, 2021

 

The U.S. food retail sector has spent nearly $24 billion on COVID-19 pandemic-related costs, and a large majority of industry stakeholders expect sales and profits to decrease in 2021, according to research from FMI-The Food Industry Association.

 

In a videoconference on Wednesday, FMI President and CEO Leslie Sarasin shared findings from a new study, “Receipts from the Pandemic: Grocery Store Investments Amid COVID-19 and the Resulting Economics of an Essential Industry,” which detailed the safety, workforce, technology and compliance expenditures that grocery retailers made in the first year of the pandemic to keep their businesses operating and protect customers and employees.

 

FMI said the research reflects results from a survey of 52 member companies representing about 40% of the food retail industry with operations in all 50 states and the District of Columbia. Combined, the respondents operate nearly 14,000 stores and have almost 2 million employees, or about 40% of the nation’s approximately 5 million grocery store workers...

 

Creating a safe shopping and working environment ...

 

High demand for labor ...

 

Other costs add up ...

 

Tough financial outlook ...

 

more, including infographics

https://www.supermarketnews.com/issues-trends/pandemic-investments-cost-us-food-retailers-24-billion-fmi-study-finds