By Retail Asia
This trend, however, is not observed in Malaysia and Thailand.
Spending in modern grocery, including the online channel, slowed down in the fastest-growing markets as the growth of modern grocery networks “failed to keep pace” with other channels amidst the pandemic, resulting in a decline in market share.
In a report, McKinsey said consumers in India, Indonesia, the Philippines, and Vietnam still prefer traditional grocery due to convenience and proximity.
“The slowdown of modern grocery is due not only to shifting consumer preferences but also to limited store expansion by retailers trying to balance growth and profitability,” the report read.
“In these markets, the adoption of channels such as online remains low due to either limited digital penetration (in India, for example) or fewer players in the market (as is the case in Vietnam),” it added.
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