Total grocery spend at local grocery stores declined 2% YOY on June 11, according to Womply (CRM provider) as seen in the following chart.
At open grocers, the average spend was up 22%, as seen in the following chart. The difference is the number of local grocers that have closed during the pandemic, benefiting nearby competitors. So far, in June, grocery sales have trended at an elevated, but slightly lower band than during the mid-April to May period.
Grocery out of stocks improving (KR)
According to NPD, 68% of US grocery shoppers said they did not experience any of the food and beverage items they were shopping for being out of stock in the week ended May 28. 51% of consumers who reported experiencing out of stocks said they were not able to purchase the meat or poultry item they were looking for that week. This represents an improvement from 61% of consumers who reported meat and poultry out of stocks the previous week. The number indicating out of stocks in beverages increased from 25% to 33% week over week. The other categories reporting high out of stocks included fruits, vegetables, and potatoes at 25% of consumers from 18%. Dairy out of stocks increased from 8% of consumers to 17% of consumers week over week.
Wine inventories coming down (STZ)
Off-premise retail sales of wine continue to be robust. In the week ended May 23 dollar sales grew 27.2% YOY. For the previous 12 weeks, wine sales were up 30.8%. The bulk wine market continues to be active due to strong retail demand as well as suppliers seeking to free up tank space ahead of the harvest in 2-3 months. Inventories continue to be worked down, as seen in the following chart, but at prices well below where the suppliers would like. Lower prices for bulk wine benefit wine brands that do not have vineyards like Constellation Brands’ Meiomi, for example.
