Retailers, consumers and prices
Check out the latest retail scanner data.
The data, compiled by ACNielsen, show what consumers are buying and what they are taking a pass on.
According to J.P. Morgan’s take, the data show that shoppers are still scouring stores for ways to save money.
“The general themes remain consistent this month: sales growth is being driven by price, private label is gaining both dollar and volume share, and volumes continue to decline overall (likely due in part to a migration from measured channels to unmeasured channels such as Walmart),” J.P. Morgan analysts said in a research note.
Oh, that last part might be a bit important – that bit about unmeasured channels.
Not all stores are measured by Nielsen and competitor IRI. And some of those stores are the ones consumers are heading to in droves in what many economists say is a U.S. recession. Think Walmart and dollar stores, for example.
Some food companies say they expect to ship fewer products after raising prices in a weak economy. Hershey said yesterday that it expects volume to fall, for example.
That said, sales are still up for many food makers, helped by sharp price increases put in place to combat commodity costs that soared to unprecedented levels.
But lower-priced private-label products (or store brands) are also gaining market share. So the balancing act continues as food makers try to keep prices high but at the same time, need to ensure the price hikes don’t result in too much lost volume.
In yet another twist, many commodity prices are now falling. That could lead to lower prices from store brands as retailers try to get more customers in the stores and lure them with lower prices.
Also in the basket:
Housing starts plunge
Mexico’s Modelo not looking to buy back stake
Sonic posts lower quarterly profit
Instead of being able to buy the items online, Walmart.com browsers can check to see if the products are in stock at a store near them.