SUPPLIER FORECAST
Cautiously Optimistic, But Still Realistic
A majority of the convenience channel’s suppliers and wholesalers feel good about their 2022 business outlook, though stumbling blocks remain By Melissa Kress
Company View of U.S. Economic Conditions in 2022 A NEW YEAR brings the promise of hope. As the two-year anniversary of the COVID19 pandemic inches closer in the United States, the new year brings with it hope for a return to normal — or as normal as 29% possible, considering how the pandemic Very/slightly has changed the convenience channel. Total negative
According to the results of the 2022 Convenience Store News Forecast Study, the channel's suppliers and wholesalers are cautiously optimistic as they head into 2022. Notably, 53 percent feel positive about U.S. economic conditions this coming year. This is down 1 point from a year ago, but far outpaces the 29 percent who report having negative feelings. When asked about their 2022 outlook for their respective businesses, more than half of the c-store industry’s suppliers and wholesalers (51 percent) said they are optimistic about prospects in the new year. However, the percentage who feel positive declined by 6 points while, at the same time, the percentage who feel negative jumped 13 points to 19 percent. Members of the supplier and wholesaler community are more bullish on their particular product categories. More than two-thirds (67 percent) feel positive about their product category, representing an increase of 13 points compared to a year ago.
The X Factors There are several factors in play when it comes to how suppliers and wholesalers view 2022. It should come as no surprise that chief among their concerns is supply chain issues. Specifically, 38 percent of this year’s respondents say supply chain issues will have the biggest impact on sales and profitability in 2022. Additionally, 78 percent rank this concern in their top three.
Suppliers/ Wholesalers
53%
Very/slightly positive
17%
Neutral
Overall Outlook for Business in 2022 It’s going to be
Terrible, wake me 1 when it’s over
5 our best year ever!
5%
14%
29%
41%
10%
1
2
3
4
5
Overall Outlook for Product Category in 2022
24%
Very/slightly negative
9%
Total Suppliers/ Wholesalers
Neutral
67%
Very/slightly positive
Source: Convenience Store News 2022 Forecast Study
study, are affecting prices as well as lead times, and finding alternative products is easier said than done.
"Currently, we are experiencing issues with our supply chain, and improvements do not look promising for 2022," one respondent commented.
"Almost every vendor is signaling difficulty. … Chasing down substitutions eats up time and effort for personnel," another respondent explained.
Supply chain woes, according to the
Labor turnover and hiring, and raw material costs, round out the top
52 Convenience Store News C S N E W S . c o m
