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Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. Check out our Sector Pro Product Consumables Pro. |
Traffic to the grocers has improved modestly in the last month, with gasoline prices falling ~$.50 per gallon to $4.20 last week compared with a month earlier.
Weekly traffic to Kroger was 7% lower YOY in July, improving nearly 2% points from June. Weekly traffic for Albertsons averaged 5% lower YOY in July, improving nearly 1% from June. Weekly traffic to Sprouts Farmers Market was the weakest of the three grocers, down 10% YOY in July, nearly 2% points weaker than June.
The higher gasoline prices had a notable impact on consumer spending as gasoline consumption is 9% lower YOY in recent weeks.
Falling below $4 per gallon could be a modest boost to consumer confidence, but food prices are still increasing at rates not seen in decades.
