In this clip from The Call @ Hedgeye, Consumables analyst Daniel Biolsi flags the promotional intensity in the grocery channel and the current inflationary impacts on his sector.
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The promotional intensity in the grocery channel has pulled back with the Delta variant, as seen in the following chart.
According to IRI, the percentage of CPG items purchased on promotional was 3% lower YOY in the week ended September 26.
For edible items, the promotional intensity was 4% lower YOY, flat compared to the prior week. For non-edible items, the promotional intensity was much higher, +12% YOY, down 1% from the prior week.
The most promotional sub-categories were general merchandise and home care, while beauty was 1% less than the prior year.
Among edible sub-categories, beverages were the least promotional down 12% YOY, while general food was 1% higher and beverage alcohol was 2% higher.
Thus, the level of promotions appears to rise and fall with COVID-19 concerns.