Kroger raises sales forecast as grocery demand stays inflation resistant

Inflation impacts online holiday grocery shopping
Consumers who tend to shop for groceries online less frequently have cut back on their online spending more than those who are more dedicated to online shopping, according to a new report on holiday shopping trends. The report, Holidays 2022 from Kroger’s 84.51° data and marketing group, divided hybrid grocery shoppers—those who shop both online and in-store—into two groups: Digital Dabblers and Digital Champs based on their online spending patterns. Digital Dabblers conduct about 85% of their shopping trips in-store, vs. 15% online, while Digital Champs conduct only about a third of their trips in-store.

The price pressures of inflation are leading to changes in the way these shoppers behave, the report found, as households cut back on non-essential items. In its recent November Consumer Digest, 84.51° found that: 65% of shoppers have been looking for sales, deals, or coupons, 61% are cutting back on non-essentials like snacks and candy and 39% are purchasing fewer items on their grocery trips

Source: Supermarketnews

Walgreens takes its delivery service around the clock
In a move that will make more than 27,000 of its product offerings available in as little as one hour regardless of the time of day, Walgreens is extending its same-day delivery service for customers across the country. The 24-Hour Same Day Delivery offering will be available at nearly 400 Walgreens locations that currently operate around the clock, and includes products like groceries, over-the-counter medications, personal care items, household essentials and more.

Source: ProgressiveGrocer

BJ’s, Instacart boost their retail media reach
The use of retail media to enhance shopper engagement and activity is ramping up and becoming more sophisticated. Warehouse club operator BJ’s Wholesale Club is launching a retail media program that it says will increase brand exposure to its more than 6.5 million shopper members. The BJ’s Media Edge initiative offers brands a comprehensive advertising solution using the Microsoft Promote IQ platform that enables the companies to target specific shopper segments with product ad placements in real time. Advertising placements are available across the retailer’s homepage, product detail pages, and during the search and browse experience.

Source: Supermarketnews

Kroger raises sales forecast as grocery demand stays inflation resistant
Kroger Co raised its annual same-store sales and profit forecasts on Thursday, riding on steady demand for groceries and household essentials despite higher prices. Kroger forecast adjusted same-store sales growth of 5.1% to 5.3% in fiscal 2022, compared with its prior outlook of a 4% to 4.5% rise. It lifted its annual earnings per share forecast to between $4.05 and $4.15, from $3.95 to $4.05. Kroger's same-store sales, excluding fuel, climbed 6.9% in the third quarter ended 5 November, beating estimates of a 4.5% increase, according to IBES data from Refinitiv.

Source: ESMMagazine

UK: Farmers making tiny profits as supermarkets boast record takings
UK farmers are receiving negligible profits for many items as food prices rise and supermarkets boast record takings. An average block of cheese or loaf of bread produces less than a penny for farmers, and fruit producers do not fare much better, making just 3p from each kilo of apples. Food charity Sustain analysed five everyday foodstuffs: apples, cheese, beefburgers, carrots and bread. It argues that because the margins are so tiny, farmers cannot invest in changing to more environmentally sustainable systems.

Source: Guardian

France: Carrefour is developing its same-day delivery services in the Ile-de-France region 
Carrefour and STEF have opened a logistics hub in Rungis designed to speed up growth of its home delivery service in the Ile-de-France region and develop same-day delivery across Paris and its suburbs. Carrefour has entrusted its partner STEF with all of its logistics operations. The Carrefour livré chez vous (“Carrefour delivers to you”) service is already available in more than 20,000 towns in France and 74% of the total population has access to it.

Source: Webwire

UK: Consumers cutting costs at every turn, finds survey
Nearly two thirds of UK grocery consumers are switching to cheaper brands to save money, according to a new survey. Research from digital media specialist Shopmium among 4,000 consumers found 64% are ditching big-name brands for own-label food and drink. The survey also found 79% are paying more attention to deals, 69% are buying fewer items and 55% are using lower-cost retailers. Nearly 80% have cut their overall grocery spending in one way or another and a further 10% say they will soon be doing so.

Source: TalkingRetail

Belgium: Carrefour launches 'quiet hours' in stores for highly sensitive people
Supermarket chain Carrefour will from now on interrupt the music in its shops and dim the lights every day between 14:00 and 16:00, except on Saturdays. The aim of this initiative is to create a calm atmosphere for highly sensitive people (people who are more sensitive to external stimuli such as light and sound). The measure will definitely apply in Carrefour's own shops. If the shop is franchised, the franchisee has the choice to participate in the initiative or not. Therefore, hypermarkets which are managed by Carrefour itself will participate along with a few Market shops. However, the Express stores are all franchised.

Source: BrusselsTimes

Europe: How are supermarkets dealing with increasing energy prices?
As wholesale energy prices went up in 2022, most businesses have been impacted by higher bills. This scenario is playing out very differently for different industries, with retail being a particularly affected part of the economy. The reasons for this are simple. Retail units have pretty high energy demands. This is especially true of supermarkets, who need to keep chillers and cooling systems on 24-7, as well as keeping the temperatures warm for staff and customers too. 

So what can supermarkets do to make sure they can continue to provide the services that so many people rely on? Well one of the noticeable things would be to increase the prices of the products to cover the shortfall. Now this may not seem problematic, but as consumers’ household budgets are already stretched, it may be the case that raising prices leads to less sales. 

Source: EuropeanBusinessReview

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