Supermarket Perimeter - December 2023 - 51

snow crab soared 222% for the first six months of 2023 compared with
the first six months of 2022, according to the " Wells Fargo Agri-Food
Institute's Industry Update - Q2. "
While the price deflation was not a significant as earlier this year,
fresh crab prices dropped 10.9% in the third quarter to $8.19 per unit on
average, according to Circana.
Many grocers have been aggressive with crab promotions, boosting
sales. For example, Downers Grove, Ill.-based Fresh Thyme Market has
been consistently promoting snow crab clusters for between $6.99 and
$7.99 a pound, along with king crab arm and claw sections for $17.99
per pound.
As a result, the retailer's crab sales surged 672% for first 10 months of
2023, while overall fresh seafood sales jumped nearly 37%, according to
Jason Resner, meat and seafood sales, merchandising, marketing, and
procurement lead for Fresh Thyme.
" Consistent promotional frequencies, constant assortment and
variety execution at store level, and strategic supplier partnerships have
helped Fresh Thyme buck the industry sales trends this year, " he said.
The exceptions in price deflation in the third quarter were shrimp and
lobster, Roerink said, which are " coming back to the level they were last
year. " Lobster prices hiked up 4.8% in the quarter to $15.14 per unit on
average, while shrimp inclined slightly by 0.9% to $7.34 per unit.
Salmon - still the top fresh seafood seller - remains price
competitive with other premium proteins, according to Roerink. Fresh
salmon prices fell 1.3% in the quarter to $10.52 per unit on average.
Comparatively, beef ribeye prices soared a whopping 11% to $18.31
per unit on average in the third quarter, while pork loin price inclined
1.8% to $6.49 per unit on average. Chicken breast prices, on the other
hand, dropped 7.3% to $6.86 per unit on average.
" More than anything, consumers are moving to ground beef and
turkey - lower priced animal meat, " Roerink said.
How grocers can hike holiday sales
Despite concerning news for fresh seafood in the third quarter, FMI
- The Food Industry Association, retailers, and Roerink share a more
positive outlook for the fourth quarter and the holiday season.
During the COVID-19 pandemic years, Americans shifted to smaller
turkeys and different proteins for Christmas, Thanksgiving and New
Year's Day, according to Roerink.
" We saw beef and seafood like salmon become more involved and
become more a part of meat-centric holidays, " she said.
Plus, while consumers are tightening their wallets, they spend more
for holidays and special occasions, according to Circana data. Only 8%
strictly stick to their shopping list, while 52% are willing to splurge for
a special occasion/holiday and 45% splurge to do something nice for
themselves, their family or friends.
Forty-one percent splurge on items for convenience and 34% splurge
if the item is healthier than the alternative - which especially plays into
seafood's benefits.
" Consumers seem very aware of inflation having pushed the price
point higher than the typical holiday spend, but special occasions
are important and that means a greater willingness to splurge a little, "
Roerink said.
Resner echoed Roerink's sentiments.
" We feel customers will be looking to treat themselves and family
to some indulgent items this holiday season. Crab, shrimp, and lobster
are those items not normally always on the shopping list that, if you
promote and market them correctly, you can get the customer to either
add them to their list or by building impressive displays at store level can
get them to buy by impulse, " Resner said. " Eye appeal equals by appeal,
and with an attractive promo retail they just might buy some to eat that
night, and some to save in their freezer. "
Fresh Thyme will focus its holiday promotions on crab legs and
shrimp, Resner said.
Shoppers are optimistic about their financial situations heading
into the holiday season, FMI executives said during the organization's
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