Meat Sales Down

The Lempert Report
March 23, 2022

Phil: Talking about some of the news. I've gotta tell you the past couple weeks has really annoyed me as, as the FMI's power of meat report, you know, has come out. It's always a great report Anne Marie does a phenomenal job with it. But the headline is always meat. Department sales hit a record 81.8 billion in 2021 up three tenths of a percent year over year. 

Phil: What annoys me about this is it's all about inflation meat prices increase 6.4% from 2020.14 and a half percent from 2029, 2019, sorry. And the actual meat sales volume declined 5.6% between 2020 and 2021. So, you know, when, whenever we see these studies, we really have to go in depth and really get a sense. And the report's grade, it says how, you know, supermarkets, as you read past the headline have lost what other retailers have lost the than more than supermarkets, where their sales are going. The fact that traditional supermarkets went from 57% of consumers in 2018 saying that supermarkets were the top choice channel, formed by meat to 48% in 2022. To me, I would say that that's a signal that supermarket's better up, both the quality, the service, and maybe the pricing as it relates to their meat departments. 

Sally: Yes, meat has, has very, a obviously gotten expensive when you shop in the grocery store and it looks like some of these super centers and clubs are starting to take some of those customers away, even though their, their share is smaller in meat dollars. We've seen an increase super centers have gone up 5.3% compared to 2020, and clubs have gone up 1.4% compared to 2020. 

Phil: Yeah. So, you know, wake up call to supermarkets, take a look at your meat department. If, if you remember years ago, all those Kroger trucks going nationwide that would say Kroger is meat, because they really put, you know, an on having the best meat department that's out there. Maybe it's time to, for retailers to really look, you know, look at their meat departments.