In a relief for many, CPG inflation has remained stable at +5% over the last 7 weeks and price increases have lessened compared to previous months.
However, there are some categories where shortages and cuts in production are putting pressure on manufacturers and retailers. Celebrating Halloween this year will hit shoppers’ wallets as shortages of Cocoa and Sugar have driven Candy prices up significantly from last year, taking some of the sweetness out of spooky season.
Inflation Snapshot
Prices have climbed at a lesser rate than previous months, with Effective Prices rising by 21 base points and Everyday prices by 19 base points. For most retailers, Everyday prices rose by 10 to 30 base points, although some retailers have had a noticeable reduction in Effective Prices.
Department Highlights
Consumer Packaged Goods (CPG) inflation has stabilized at +5% over the past 7 weeks, while Perishable inflation remained at +1% for 8 weeks. Within Perishables, Beef and Chicken inflation is rising due to supply constraints, with Chicken prices increasing by 0.33% over 6 weeks.
The spooky season brought not only fun but also significant changes in the candy market. Assorted brand bags of candy, especially sought-after during festivities, saw notable price hikes. Private label candy increased modestly by 4.8%, contrasting sharply with manufacturers like Ferrara, Hershey’s, and Mars, whose popular assorted bags saw substantial price rises. These fluctuations illuminate the evolving dynamics impacting our favorite Halloween treats.
Channel Shifts
Consumer trips are at the same level they were last year but have fallen over the last 6 weeks. The Mass channel has the greatest increase in frequency of consumer trips at +5% y-o-y, overtaking the Dollar Channel (+4%).
Global Trends
In recent economic developments, inflation rates have seen a decline in Italy, Germany, and the UK. However, the story remains consistent with inflation holding steady in France and the USA. This variance across nations highlights the diverse and evolving economic landscapes, shaping global financial trends.
Regardless of external market conditions, the right combination of omnichannel competitive intelligence and Pricing Science can help you increase your margin, maintain consistent revenue growth, and increase customer loyalty.
- Leverage omnichannel comp monitoring and Machine-learning powered Product Linking to track your product catalog against like-item competitive offerings and respond to competitors’ online and store-level tactics.
- Use Price Image to objectively identify the items that most directly influence customer perception, then optimize these items to increase trips and satisfaction while defending margin across the store.
- Balance short-term profits with long-term success by optimizing prices toward Price Image and boosting trip frequency and share-of-wallet.
Click here to request access to the full report and learn how Engage3’s Price Optimization and Competitive Intelligence solutions can help you fuel sustainable growth in any market.
