Protein delivered mixed consumer pricing results over the back half of summer, according to the Jefferies Food & Convenience Retail report released this month. Some subcategories will likely drive near-term profits, while others could constrict them.
A 0.8% decline in consumer poultry pricing between August and September is one of the results that may leave retailers unsettled. Both poultry and chicken saw drops in CPI at both the four-week and 12-week benchmarks.
However, retailers should see relief from pork offerings, which climbed 1.4% between August and September, 3.2% between June and September and 6% over the past 52 weeks.
Beef and veal stumbled between August and September, dropping 0.4%, but the sub-sector is on an overall roll with a 1.2% rise since June and a 7.4% year-over-year climb.
On the dairy side, eggs are also a sight for sore-eyed grocers with improved CPIs across the board. The item gained 1.5% over the four-week stretch, 7.8% across 12 weeks and a substantial 35.4% boost year-over-year.
Retailers also saw CPI for food at home grow in the one-month, three-month and 12-month stages, a trend that could discourage turning to grocery and tempt shoppers to opt for takeout and restaurants more frequently. The category’s CPI is up 2.6% since last September.
However, those that do opt for takeout over a home-cooked meal, will be met with a 0.1% rise in pricing between August and September, a 0.6% climb over the past three months and a 1.5% jump from this time in 2016.