NEW YORK — Retailers waging “turkey wars” this holiday season could be hurt by the rising cost of ammunition, an analyst said Monday.
Turkey costs are up about 24% this year as compared to last, even though price competition among retailers for turkeys is hotter than it was a year ago, said Meredith Adler, an analyst at Barclays Capital, speaking at Barclays’ annual Holiday Retail Roundtable here.
“Turkey prices are ridiculous, and since the cost of turkeys are up almost 25% this year, we know there are retailers selling below cost,” Adler said.
An examination of advertised turkey prices in various markets revealed that Southern California and Dallas — where food retailers advertised turkeys for as low as 29 cents per pound — were particularly hot markets, Adler added. Wal-Mart, which was aggressive with its turkey pricing a year ago only to encounter stock issues in some markets, by contrast has taken a less aggressive posture with regard to turkey pricing, Adler added.