Advantage Solutions has released two proprietary studies examining the pressures and consumer behaviors that will define retail in 2027: the Advantage360 2026 Outlook Survey of manufacturers and retailers and the 2026 Shopper Study, drawing on 8,675 shopper responses.
“As the link between brands, retailers and shoppers, we know that understanding what drives each group is core to how we serve our clients,” said Dave Peacock, CEO of Advantage Solutions, the St. Louis, Missouri-based omnichannel retail solutions agency. “We remain committed to being a proactive partner, helping our clients act on what is coming, not react to it.”
Outlook Survey: margin tension and a trade-spending standoff
The semiannual Outlook Survey, based on 138 responses from manufacturers and retailers collected Aug. 7-Sept. 15, found:
- None of the manufacturers or retailers surveyed believe margin pressure has peaked; 69 percent of manufacturers and 66 percent of retailers expect it to continue through 2027 or longer, and nearly 4 in 10 on both sides call it structural, with no end in sight.
- Trade spending is becoming a sticking point: 47 percent of manufacturers plan to cut trade spending, while 70 percent of retailers require that support in response to supplier price increases. When suppliers raise prices, 95 percent of retailers push back or negotiate and 51 percent report delisting SKUs.
- Retailers’ top margin-recovery responses are own-brand growth and SKU rationalization (78 percent each), while manufacturers lead with sourcing renegotiation (52 percent) and price pass-through (48 percent).
- More retailers than manufacturers expect to raise prices in response to tariffs, with planned increases extending from premium items (81 percent of retailers) to value items (73 percent), which the report warns could push value shoppers to shift channels.
- On AI, 53 percent of retailers are very confident in its competitive potential versus 21 percent of manufacturers, yet only 19 percent of retailers and 8 percent of manufacturers report meaningful efficiencies or growth so far.
- Labor gaps carry a measurable cost: 57 percent of retailers report lost sales and 57 percent weaker service from staffing constraints in shelf availability and store appearance.
Shopper Study: experience beats price
The annual Shopper Study, fielded April 13-May 1 with a nationally representative sample, found:
- 62 percent of shoppers say a store being easy to shop and navigate is a reason they choose their grocery retailer, ranking ahead of everyday low price at 57 percent.
- Single-store loyalty is at an eight-year low: 23 percent of shoppers use the same store for groceries nearly all the time, while 66 percent split trips between a couple of preferred stores.
- 70 percent of shoppers report eating more meals at home than a year ago.
The studies recommend joint planning that connects efficiency efforts with changing demand: agreeing on shared measures of incremental sales, aligning pack sizes and offers with specific trips and expanding technology investments around demonstrated outcomes.
Related: Acosta: Shopper Confidence Falling Despite Steady Purchasing Power