October 3, 2023


Food Information

Middle-store bakery up virtually 10% in Could

4 min read

Could continues to inform the story of moderating inflation, nevertheless, the impression was felt within the gross sales numbers for the month — as some departments offered extra kilos, they nonetheless reported misplaced {dollars} as a consequence of deflation. 

In response to a Could survey of 1,000-plus main grocery buyers, 20% count on they are going to journey a bit extra this summer time than in the summertime of 2022, citing inflationary pressures which are difficult some journey plans, reviews client conduct analysis firm Circana. 

The info factors to fewer and shorter journeys and staycations, that are each areas of alternative for grocery retailers. It additionally reveals greater than eight-in-10 buyers are on the lookout for offers and making use of a number of money-saving measures when shopping for groceries — shifting {dollars} between retail and meals service, channels, merchandise, and types.  

In relation to inflation, the replace reveals a rise of 6.9% in Could throughout all meals and drinks measured in supermarkets, golf equipment, mass, supercenters, drug, and army shops. Whereas the numbers proceed to average when in comparison with the identical four-week interval in 2020, costs have elevated by 23.3%.

Listed below are another key class and client conduct takeaways from the month of Could, based on analytics agency 210 Analytics:

Packing on the produce kilos 

The produce class couldn’t maintain on to the optimistic pound efficiency seen in April, with each {dollars} and kilos trending about 1% under in Could vs. year-ago ranges. Most notable is that Memorial Day impacted weekly produce gross sales compared to a non-holiday week. Six out of the highest 10 fruits (suppose berries, melons, bananas, and so on.), offered extra kilos in Could 2023 than in Could 2022. 

What’s extra, berries continued to be a powerhouse promoting twice the scale of the No. 2 vendor and attaining a 3.3% achieve in kilos. Contemporary greens, alternatively, reported {dollars} and pound numbers that had been all around the board. Greens nonetheless had the higher quantity efficiency in Could. 

Frozen potatoes make a comeback

Frozen meals costs elevated 8.9% for the month of Could, and greenback gross sales progress over 2022 ranges was supported by most areas inside frozen. Some exceptions had been meat/poultry, seafood, and drinks, the place the unit declines weren’t offset by the will increase in value. 

Frozen potatoes/onions, vegetables and fruit, and desserts/toppings noticed the most important gross sales positive aspects, regardless of a 42.3% enhance within the value per pound between Could 2022 and Could 2023 for frozen potatoes/onions. Even so, fries and fruit had been the most important frozen sellers, adopted by blended greens.

Deli has a purpose to have a good time

Whereas all departments had sturdy gross sales the week of Memorial Day, when shoppers determined to splurge just a little it was evident in deli ready and deli entertaining. Bigger trays and platters boosted quantity gross sales by 2.6%, and deli-prepared meals had been the most important vendor within the deli division.

Tacky dairy calls for

Dairy demand benefited from deflation. With egg and different costs falling steadily, items had been flat in opposition to Could 2022. Cheese and cottage cheese additionally skilled actual progress.

Middle-aisle bakery enhance

Middle-store bakery was the marginally greater vendor in comparison with perimeter with elevated greenback gross sales by +9.7% in Could 2023 versus a yr in the past, however the perimeter bakery had the higher unit efficiency. Small indulgences, akin to cookies and donuts, are outperforming different areas. 

Seafood begins to deflate

Contemporary and frozen seafood offered extra kilos in Could 2023 than in Could 2022, however deflation pulled these {dollars} under year-ago ranges by -2.2% and -3.8%, respectively. This was pushed by deflation in shellfish whereas finfish had a small uptick in year-over-year costs. Frozen seafood costs had been additionally decrease in Could of this yr in contrast with final yr’s Could. Contemporary salmon, crab, and lobster costs proceed to turn into extra favorable, and in frozen the typical value per pound for shrimp decreased by practically 4%, whereas salmon elevated by as a lot.

Meat loses weight

Meat skilled deflation as hen costs dropped under year-ago ranges for the primary time in lots of months. However deflation added to barely decrease quantity gross sales, for a year-over-year greenback decline of 1.5% in Could. On an annual foundation, meat gross sales nonetheless tracked 2.4% forward in {dollars}, however kilos had been 1.7% under the 2022 ranges. The 2 greatest sellers, beef and hen, had been very totally different in Could: Beef skilled a 2.2% lower in pound gross sales, whereas hen pound gross sales elevated 1.8%, which is pretty typical for recessionary and inflationary patterns. Hen and contemporary unique (i.e., bison) had been the one two areas that elevated pound gross sales in Could 2023.

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