If you frequent the home page of Deli Market News, then you know we have been keeping a close watch on the impacts of rising inflation on the retail industry. As price hikes continue to cause challenges for buyers and suppliers while impacting consumer behaviors, Bloomberg Second Measure recently analyzed how United States consumer spending changed between July 2021 and July 2022 at major grocery chains.
As MarketWatch reported, the grocery industry saw the biggest year-over-year price hikes since the 1970s in July 2022. Bloomberg Second Measure’s study revealed that, despite the pricing spike, most grocery companies experienced year-over-year growth in average transaction values in July 2022.
According to the report, average transaction values increased the most year-over-year at H-E-B and Kroger. At H-E-B, the average transaction value grew 12 percent, while transaction value also increased 10 percent year-over-year at Kroger banners. Average transaction values also grew 8 percent at Aldi, 7 percent at Ahold Delhaize, 4 percent at Albertsons, and 3 percent at Publix.
Also revealed in the report, U.S. sales at Ahold Delhaize increased 18 percent year-over-year, followed by Aldi and H-E-B with increases of 17 percent each. During this same time period, U.S. sales rose 15 percent at Publix, 14 percent at Trader Joe’s, 12 percent at Kroger, and 10 percent at Albertsons.
As they look to mitigate inflation impacts and drive consumer loyalty, grocers are implementing strategic plans such as offering more prepared meals or expanding their delivery and omnichannel programs to further deliver on convenience. As retailers put these strategies in place, Deli Market News will also look to see how dairy, deli, and specialty suppliers are being supported amidst inflationary pressures as well.
Keep a tab on the ever-changing retail market with us here at DMN.
