Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel BiolsiCheck out our Sector Pro Product Consumables Pro

Lower Gas Helping Grocery Traffic? - 2022 08 09 10 15 43

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.

Lower Gas Helping Grocery Traffic? - hnh