TRADING
MERGERS AND ACQUISITIONS LUMINA INTELLIGENCE
Consolidation set to continue
Research shows grocery professionals also believe the next 12 months will see an increase in casualties in the sector.
M
erger and acquisition activity is set to continue in the grocery retail sector in the coming 12 months, new research reveals. The data from Lumina Intelligence shows 88% of surveyed grocery retail professionals agree that more merger and acquisition activity is inevitable in the market and 50% agree that the next 12 months will see an increase in casualties among food and drink retailers. Katie Prowse, Senior Insight Manager at Lumina Intelligence, said: “Despite restrictions easing, businesses operating in the grocery retailer and eating out markets are less positive about current trading conditions than they were in evolved into well-established habits. October 2020. However, businesses are Delivery and technology have always much more positive about future trading been key to attracting younger consumconditions.” ers, however the pandemic has resulted The survey also found the top in all demographics embracing these three consumer trends impacting grocery are: “It is clear that business leaders agree with demand for home delivour forecasts that key pandemic-led trends ery (34%), use of interwill continue to evolve post-pandemic. net/mobile tech/apps Katie Prowse (31%), and the changing behaviour of younger consumers (28%). trends and truly increased the opportuProwse added: “It is clear that busi- nities available to retailers and operators.” ness leaders agree with our forecasts that The survey of business leaders also key pandemic-led trends will continue found that 63% of surveyed grocery retail to evolve post-pandemic. Consumers professionals said that increased import/ have been forced to embrace new things export costs have impacted their business during the pandemic, which have since and 75% believe that the UK government
Businesses are much more positive about future trading conditions
should be supporting businesses on overcoming Brexit challenges. Prowse said: “Brexit, coupled with heavy restrictions on movement caused by the pandemic, has resulted in significant resource challenges for businesses across the UK food and drink industry. Business leaders want to see the government do more to support. “Issues surrounding the UK’s departure from the EU including trade deals, processes around imports and exports and EU worker rights in the UK are all the remit of the UK government and so it is vital that it plays a leading role in aiding, communicating, and working alongside businesses through the transition.”
WEDNESDAY 18TH AUGUST 2021 / ISSUE 69 / SLRMAG.CO.UK / 19
