Will CGs Meet Their Retail Execution Goals in 2023?

With ambitious goals, lingering labor and inflation challenges, and some level of uncertainty in their plans, our report unpacks the plans, pivots and renewed focus on the retail channel for CGs, in their pursuit for improved sales and retailer relationships.

After two years of unprecedented upheaval and uncertainty, 2022 found CG companies hitting their stride in the “new normal” of retail. Brands that may have overinvested in eCommerce during the pandemic renewed their focus on brick-and-mortar sales—and with good reason: in-store shopping has rebounded in a major way since the height of the pandemic, growing at rates not seen in 20 years, and the balance between online and offline shopping has settled back to its pre-pandemic levels.

This is important news for CGs, and it also means that getting consumers’ attention in-store is more competitive than ever. The pressure is compounded by several key challenges:

• With unemployment still at historic lows, field teams are stretched thin.
• Lingering supply chain disruptions and increased demand make it hard to keep products on shelves.
• CPG inflation, which hit an all-time high in August, with unit prices up +12% versus a year ago, has affected consumers’ shopping behaviors, driving them toward cheaper brands, generics, and promotions.