The beginning of the year is a great time to reflect on where we’ve been and where we are headed. What new directions might the marketplace take in 2016? How can we as retail experts take advantage of these trends? 

Our team at Phillips Edison has predicted the top five grocery shopping trends for 2016:

According to Catalyst data published in the Network of Executive Women’s recent annual report, the retail workforce is composed of 48% women, yet fewer than 2% of CEOs are women and only about 18% of corporate officers are women.  Yet, studies show that female leadership leads to higher profits and stronger corporate results. 

The foundation of any successful company is its associates. Many companies invest a great deal of time and money into finding and recruiting highly desirable talent, however some seem to neglect the importance of retaining these qualified associates.

For millennials, grocery shopping is a far cry from stocking up on weekly staples. Studies continue to show that their purchase decisions are driven by their healthy eating habits, budget constraints, technology obsession, and desire for experiential shopping. Just a handful of recent data shows:

Shopping centers can have a major impact on the health of a community. Placing—and keeping—the right tenant in the right location is critical to creating a center that provides value to the community and maximizes foot traffic, and in turn, brings value to our investors.

For instance, our Regional Vice President of Leasing, Vasili Lyhnakis, was recently part of an opportunity that allowed us to recapture some sites in our portfolio due to RadioShack closures across the country.

While many retail sectors have added e-commerce to their business models, the grocery segment has lagged behind. In some sectors, such as office supplies, e-commerce comprises half of all sales. By contrast, grocery and consumer packaged goods (CPG) e-commerce sales comprise only about three percent of the sector's sales.

The grocery industry is celebrating its 99th anniversary. I recently came across the article “The grocery store turns 99 with its survival in doubt” (Fortune Magazine) in which author Chris Morris discusses the future of the grocery industry.

Whether it’s about strategic plans, budget numbers, happy hour or free food, every professional in today’s business world is required to share information at some point during the course of their day.  And it’s not always easy.  How often have you found yourself asking someone, “Didn’t you read the email/memo/flyer, etc.?”  How often has the answer been, “I saw it but didn’t read it” or “I read it but forgot what it said”?  Effective communication is a challenge we all face.   

Price continues to be a competitive differentiator for grocers. Forty-five percent of consumers who stopped shopping at a given supermarket did so in search of lower prices, according to a 2015 Consumer Reports survey. The survey also found that only 60 percent of consumers were completely or very satisfied with their store's prices.

There are several favorable markets that will continue to provide opportunities as part of our nationwide acquisition strategy. Populations are growing, consumer spending power is high, and real estate is tending to offer consistent returns. Here are some of the top markets where we’re seeing solid demographic and economic growth trends that are creating lucrative opportunities for investors and retailers.

Houston