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Below is a brief excerpt from a complementary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more. |
Fresh produce demand grew 10% YOY in the week ended August 9, accelerating 1% from the previous week as seen in the following chart.
Fresh vegetables demand decelerated 1% to 13% in the week ended August 9.
Fresh vegetables indicate cooking at home, which remains elevated. Fresh produce is a key traffic driver for Sprouts Farmers Market. The company guided July SSS expectations to be up 9% YOY.
Even though unemployed recipients of the additional $600/week in federal support are now eligible for food stamp benefits, food purchases have decelerated with the expiration of the extra benefits.
The gap between dollar growth and volume growth widened in the latest week as produce sales increased 9.5% and volumes increased 5.8% as seen in the following chart.
Overall inflation was 3.5% with fruit having greater price/mix growth of 4.1% than vegetables at 1.7%.
