With food prices soaring with no end in sight, consumers seek alternatives | Business Observer

Private-label groceries, often thought of as a way to save money on grocery shopping, saw higher sales as inflation and supply problems pushed prices higher.

According to Catalina, a St. Petersburg marketing firm that specializes in shopper intelligence, shoppers are increasingly turning to retail store brands and away from big names in an attempt to cut costs.

According to the company’s Shopper Intelligence Platform, half a dozen products are seeing double-digit sales growth, including canned fish up 10% and soup up 17%. Say.

Sean Murphy, Chief Data and Analytics Officer at Catalina, said:

And for good reason.

The latest consumer price index report, released on August 10, shows that the cost index of food at home has risen 13.1% since last year, while inflation is declining. This is his biggest year-over-year increase since 1979.

The U.S. Bureau of Labor Statistics reports that the household food index rose 1.3% in July as prices in food categories at major grocery stores rose again. % increased. Meat, poultry, fish and eggs rose 0.5%. Fruits and vegetables were up 0.5%. Cereals and bakery products rose 1.8%.Overall food expenses increased by 10.9%

A spokeswoman for Sprouts Farmers Market, which will open a new store in Cape Coral in October, said there was more than one factor driving up prices and that the chain “strives every day to offer great quality at affordable prices.” said.

To that end, Sprouts CEO Jack Sinclair said on the Aug. 3 earnings call that the chain is doing what it can to get shoppers to buy more while dealing with price increases.

“Consumers are under pressure from inflation, so they are actively focusing on the value of the store as a whole,” he said. “We will drive value through packs and pricing, leaning towards superior produce pricing, emphasizing high-volume products that allow customers to control costs, and choosing local produce that offers more attractive prices. We are expanding and running BOGO and vitamin offerings to help our customers. Save.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *