Like Inflation, Grocery Sales Hold (Mostly) Steady
It seems like grocery inflation is mirroring grocery spending.
Fresh off the news that food-at-home inflation inched up again in October – a scant 0.1% but still a hike on top of frequent increases – another new government report shows that consumer resilience continues. According to the U.S. Census Bureau’s latest data, advance estimates of U.S. grocery store sales held steady, moving up the same 0.1% rate, to $75.34 billion, from $75.28 billion.
RELATED: Familiar Refrain for Grocery Inflation Rate
On a yearly basis, grocery store sales were 2.5% higher last month than in October 2023. Total retail and foodservice sales rose 2.8% on a year-over-year basis and hit $718.9 billion in October, up 0.4% from September.
On Nov. 12, the National Retail Federation (NRF) released its monthly retail monitor report, which showed a 3.76% bump in grocery and beverage sales during October. According to Washington, D.C.-based NRF, overall retail sales, excluding cars and fuel, ticked up 0.74% compared with the prior month.
“Healthy spending resumed in October as consumers continued to benefit from this year’s job gains and higher wages,” observed NRF President and CEO Matthew Shay. “Inflation is mostly limited to services at this point, and prices for some retail goods are actually falling. October sales have set the stage for a good start to the holiday shopping season.”
Another analyst said that the data heading into the busy holiday spending stretch shows the ongoing tension between wariness and a wiliness to buy.
"The 2024 holiday season offers more ‘normalcy’ for retailers, with inflation cooling. Still, there is no doubt that consumers continue to seek value,” Matt Pavich, senior director of strategy and innovation at Alpharetta, Ga.-based retail pricing optimization solutions provider Revionics, told Progressive Grocer. “Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals.”
