Hedgeye CEO Keith McCullough is adding Albertsons (ACI) to the short side of Investing Ideas. Below is a brief note.
Here's a good research note from our Consumables Pro team (Daniel Biolsi and Howard Penney) on ways to think about playing the SHORT side of #InflationAccelerating:
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Produce prices rise into Memorial Day weekend (ACI) Fresh produce prices are at the highest price for the 21st week of the year (the week headed into Memorial Day weekend). The following chart is a composite of numerous fresh produce items. Higher wages, freight costs, and assorted shortages contributed to the inflationary pressures. Strawberry prices hit $2.11 per pound for the week, exceeding the previous record price of $1.36 per pound driven by robust demand. Fresh produce is one of the highest margin departments in a grocery store. The increased sales velocity during the pandemic led to gross margin expansion for the grocers due to less spoilage. This year sales velocity will be lower while inflationary pressures increase, switching the margin tailwind to a YOY headwind. |
Albertsons (ACI) and Kroger (KR) are good sales on green here,
KM
