Supermarket Perimeter - May 2023 - 89

DUE TO A SURPLUS IN WILD ALASKAN SALMON FROM LAST
SEASON, along with significant deflation on crab and lobster, grocery
chains across the US are offering specials on the popular seafood items.
Fresh crab declined 15% for the 3 weeks ending 26 February,
according to 210 Analytics and Circana (formerly IRI and NPD Group),
while fresh lobster prices dropped 15.4%.
As a result, fresh crab sales hiked up 11.5% during the quarter, while
unit sales soared 25.7%. While fresh lobster sales dropped 8.8% during
the quarter, units rose 1.9%.
Crab also realized the largest volume gains -up 1.6 million pounds
- in the fresh seafood department for the 13 weeks ending Feb. 4,
according to Nielsen IQ powered by Idaho Falls, Idaho-based Category
Partners. NielsenIQ shows a 15.6% drop in fresh crab prices.
Meanwhile, frozen crab prices declined a whopping 71.6% over the
most recent quarter, resulting in a 3.6% uptick in sales, according to
Circana and 210 Analytics.
" With the ups and downs of any commodity market, there are always
nuggets of gold to grab. Recently it was snow crab as that is probably
one of the fastest cost-deflating seafood items we have recently seen
compared to the same time last year, " said Jason Resner, meat and
seafood sales and merchandising lead for Downer's Grove, Ill.-based
Fresh Thyme Market. " We definitely locked on to that item and have
made some significant, positive impact on year-over-year pounds
sold and increased our customers consumption of snow crab so far
this year. "
Resner notes an average of 240% deflation at retail in snow crab -
sliding from around $17.99 per pound last spring to between $6.99 and
$7.99 a pound this spring.
Fresh Thyme has also done well with promotions on 6/12-count
colossal king crab legs on special for $39.99 a pound this spring, as well
as on the king crab arm and claw combo.
" Both have done well as we are advertising those at around a 67%
retail deflation from last year, " Resner said.
Specials on frozen snow crab also abound. Jacksonville, Fla.-based
Winn-Dixie, a division of Southeastern Grocers, priced the popular
shellfish at $9.99 per pound for the Easter weekend.
Recently I saw a great example
out of the UK marketplace that
had shelf signage in ground beef
pointing out that the price per pound
had dropped 36% versus a couple
of months prior. What a great idea
for seafood to point out how much
more affordable a crab or lobster
dinner is now versus last year. "
Anne-Marie Roerink, 210 Analytics
Meanwhile, The Fresh Market was touting fresh wild North American
lobster tails for $9.99 each over the Easter holiday weekend, along with
ultimate lump crab cakes at two for $12.
" One of the most common ways to save money in today's tough
financial times is by cutting back on restaurant spending. This is driving
a strong desire to recreate restaurant meals at home, " said Anne-Marie
Roerink, principal at 210 Analytics. " This is a big opportunity for crab
and lobster in particular because neither perform well in restaurant
takeout and delivery. "
As a result, retailers must overcome shoppers' cooking barriers with
easy-to-follow instructions, ready-to-cook packaging solutions or
steam/prepare-in-store ready-to-eat offerings, Roerink noted.
Retailers should also promote crab and lobster for holidays such as
Easter and Mother's Day as " we always see shoppers willing to open
their wallets just a little wider for special occasions, " Roerink said.
Retailers can also " self-invent " holidays such as " Lobsterfest " - " great
times to " reconnect people with crab and lobster, " she said.
Grocers can also boost sales by actively pointing out deflation
on the shellfish, Roerink suggested.
supermarketperimeter.com
MAY 2023 - 89
Crab
promotions
have been
a winning
proposition for
many retailers
this year.
Source, Alexandr - stock.adobe.com, 210 Analytics
http://www.supermarketperimeter.com
Supermarket Perimeter - May 2023

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