More than half, 56% of primary grocery shoppers, were extremely concerned about COVID-19 this week, according to the IRI survey of primary grocery shoppers. This is the highest rate on the question since the first week of May. Additionally, more than one-third of Americans said they were more concerned than they were last week, especially shoppers residing in California (49%), Texas (46%) and Florida (42%). This heightened concern is translating into more of the total food demand flowing to retail than seen during some of the non-holiday weeks in May and June.
Additionally, many shoppers are dealing with financial pressure. In IRI’s survey this past week, 30% of primary grocery shoppers say their financial situation is a little or a lot worse off than it was a year ago.
Demand shifts back to retail
All this resulted in continued highly elevated demand for meat at retail.
Meat department dollar sales increased 22.2% versus year ago — about one percentage point less than last week’s 23.4% and the 20th week of double-digit gains since the onset of the pandemic. Whereas dollar sales were slightly lower than the week prior, volume sales increased as prices became more favorable for consumers. Volume sales increased 11.0%, the second week of double-digit volume gains in July.
Unit sales continue to wow as well, with 21.2 million more transactions compared with same week year ago and 842 million more transactions since the pandemic began. Pre-pandemic, total meat dept units were down versus year ago.
So far during the pandemic, starting March 15 through July 26, dollar sales are up 34.6% and volume sales have increased 21.4% versus the same period last year. This translates into an additional $7.9 billion in meat department sales during the pandemic, which includes an additional $3.6 billion for beef, $1.1 billion for chicken and $838 million for pork.
What’s next?
With concern is rising again, more Americans plan to further delay their return to normal activities, according to the IRI shopper survey — though in part this may be due to state mandates disabling them to engage in these activities. Up from 56% two weeks prior, 73% of consumers will wait at least four more weeks before going to a bar/club; 56% will wait this amount of time before dining out at a restaurant and 45% before going to a coffee shop — signaling delayed engagement with foodservice.
Meanwhile, several of the early pandemic purchasing patterns are reemerging, including stocking up on food. Two-thirds of shoppers (66%) aim to buy enough food for their households to last them two to four weeks, according to the IRI survey. As such, items with longer shelf life continue to do well, which favors frozen meat and seafood sales and fresh items in packaging that ensures longer shelf life.
Back-to-school season is also still up in the air. In the IRI shopper survey, a third of parents said they do not know yet if and when their children will be in school in the fall. Fewer than one in five expect to have their child/children back at the school for a full schedule as of the late July survey. Almost half of parents who usually have a daycare/childcare provider for a child under six continue to say they will wait at least four more weeks to resume care.
Between the renewed social distancing mandates, rising consumer concern about the virus and economic pressure, grocery sales are likely to remain highly elevated for the foreseeable future.
View our continuing coverage of the coronavirus/COVID-19 pandemic.
Like what you just read? Sign up now for free to receive the Poultry Future Newsletter.
