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Perishables dollar sales rise, unit volume falls in June

Consumers exhibit heightened concern over inflation, IDDBA/IRI report finds

Russell Redman

July 19, 2022

3 Min Read
Grocery shopper-meat department_from Save A Lot.jpg
Total sales for perishables climbed 6.8% in June, yet 59% of consumers are seeing fewer of the items they want on sale, the International Dairy Deli Bakery Association reported, citing IRI research.Save A Lot

For grocery shoppers lately, the case has been no different in fresh foods than other store departments: Prices are high.

In its June marketplace report, the International Dairy Deli Bakery Association (IDDBA) cited an IRI survey finding that 96% of primary shoppers say they are paying somewhat or a lot more for groceries than they did last year. Respondents, too, listed examples of increased pricing across nearly every store department.

“A number of deli, dairy and bakery categories are among the most frequently mentioned items when shoppers reflect on inflation,” Jonna Parker, team lead for fresh at IRI, said in the IDDBA report. “Bakery and dairy have a very high trip frequency, making consumers ultra-aware of the price increases.”

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In June, total sales for perishables climbed 6.8% to $25.8 billion, with above-average increases for refrigerated including dairy ( 14.8% year over year to $6 billion), bakery ( 9.3% to $3.1 billion) and deli ( 7.2% to $3.4 billion), IDDBA reported, citing IRI U.S. multi-outlet data. Other fresh categories generating gains for the month were meat ( 5.7% to $6.7 billion) and produce ( 1.4% to $6.1 billion), while seafood sales fell 13.3% to $502 million.

Year-over-year unit sales were down across the board for June, with seafood (-21.8%) as the only fresh category seeing a double-digit decline. That was followed by produce (-6%), deli (-4.7%), meat (-4.1%), bakery (-3.4%) and refrigerated including dairy (-2.5%). Overall perishables unit sales dipped 4.5% in June versus a year earlier.

Related:Sales at grocery stores edge up again in June

Compared with the pre-pandemic period, the largest gain by dollar sales in June came from refrigerated including dairy, up 29.2% from June 2019. All fresh departments experienced double-digit dollar sales growth over that time span, including meat ( 24.6%), bakery ( 22.3%), deli ( 21.2%), produce ( 17.6%) and seafood ( 15.4%), with total perishables showing 23% growth.

Still, just two departments — produce ( 2.7%) and deli ( 2.6%) — recorded unit sales gains in June 2022 versus June 2019. Overall perishables unit sales in that time frame inched up 0.1%, but decreases included bakery (-5.2%), seafood (-4.7%), meat (-0.6%) and refrigerated with dairy (-0.5%).

Customers are hunting for savings in fresh foods but not always finding it. IDDBA’s June report said, according to IRI research, 59% of consumers are seeing fewer of the items they want on sale, and 43% said items aren’t discounted as much as they used to be. About half of shoppers, 51%, are stocking up on certain items more than usual, 18% out of fear they won’t be available next time and 26% out of concern that prices may rise further.

Related:June food-at-home prices jump over 12%

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“All this points to great power of relevant, targeted promotions if supply chain conditions allow for it,” explained Heather Prach, director of education for IDDBA. “It could be a cross-promotion, happy-hour sale, one-day or three-day promotion, but try to keep relevant promotions front and center to retain a greater share of primary shoppers instead of them cherry-picking competitors’ deals and losing a vital part of the total store basket.”

IRI’s monthly research revealed that 93% of all grocery customers are concerned about inflation, the highest percentage yet in its survey. Eighty-one percent of shoppers said they changed what and where they made purchases in June, up from 50% in fall 2021. Those changes include seeking sales specials (54%), skipping non-essentials (45%), finding coupons (33%), and buying more private or other low-cost brands (29%). And even amid high gas prices, 17% of respondents said they cherry-pick specials across retailers, and 16% now do some grocery shopping at lower-cost retailers.

“While consumer options for money-saving options when buying groceries are plentiful, it is important to note that it is not a ‘race to the bottom’ to the cheapest choice nor a complete abandoning of restaurant visits,” Parker noted. “However, the 40-year high inflation does mean consumers are much more strategic about their grocery and restaurant trips.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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