Survey: consumers are still eating at home (KR)
Our weekly consumer survey points to continued increased spending on food at home. Nearly half (48%) of consumers say they are spending more on food at home than before.
J&J Snack Foods in quarantine (JJSF)
J&J Snack Foods reported a 2% sales decreased for the quarter ended March 28. In the first four weeks of the current quarter, sales have declined by 45%. Consensus estimates for revenue was a 32% decline. Roughly 2/3 of the company’s sales are to venues and locations that have shut down or have sharply curtailed their foodservice operations. The company pre-announced weaker results on March 23 when it said 2/3 of sales are to customers that had significantly reduced services, which updated comments on March 12 when it expected 1/3 of customers to be primarily impacted. If two pre-announcements weren’t enough of a warning, the company’s CFO also announced his resignation on Friday. The company’s best-known brands are Superpretzel, Icee, and Slush Puppie. JJSF’s pretzels, churros, ices, and funnel cakes are the types of indulgences customers prefer to enjoy away from home. The quarantine has chosen its winners and losers based on sales and customer mix.
Local grocery sales reaccelerating (SFM)
Local and independent grocers’ sales reaccelerated to 55.6% YOY on April 23, as seen in the chart below, according to Womply (CRM provider). It is worth noting that the chart does not include grocers that have closed. The closure rate doubled from the second week of April when it was at 10% to the third week. Despite the closures, the recent reacceleration suggests elevated consumption instead of stocking.
