Supermarket Perimeter - August 2023 - 58

Seafood: The way forward
noted. Because retail deli prepared foods are performing well overall,
" we're seeing the piggy back effect where feet are hitting the aisle and
discovering the seafood offerings, " she said.
In fact, sales of prepared seafood items at delis grew 4.7% for the 52
weeks ending May 23, according to Nielsen data analyzed by Idaho
Falls, Idaho-based strategic insights company Category Partners.
The sales growth was driven primarily by inflation, with unit volume
rising only 0.5 percent during the past year, according to Eric Le Blanc,
senior vice president of marketing. However, the most recent 13 week
sales ending May 23 show a different story, as units jumped up 13.7%
and dollar sales grew 0.9%.
Grocers have " gotten really creative with what they're offering
consumers with the prepared meals and just their overall offering, "
said Kate McShane, who covers the U.S. retailing industry for Goldman
Sachs, during the company's recent State of the U.S. Consumers and
Retailers webinar. " I do think grocery stores look a little bit different than
they did before the pandemic when it comes to ready-to-heat, readyto-eat,
all of that stuff. "
Retailers who are engaging with customers on prepared seafood and
educating shoppers how to cook meals at home will benefit the most.
" there are a lot of us who didn't grow up on the coast and grew up
more in the middle of the country. And so we aren't as experienced as
we perhaps would like to be in preparing some seafood products, " said
Leslie Sarasin, president and CEO of FMI.
" To the extent that our retailers are really engaging with their
customers, helping them learn how to prepare these products, and use
them in their homes and make them popular among others in their
family, I think is really going to make a huge difference in how this
moves forward, " Sarasin added.
FMI's The Food Retailing Industry Speaks survey also found that
74 percent of retailers plan to expand foodservice departments and
enhance their perimeter departments this year, which is likely to boost
seafood sales.
Price relief at retail
For the first time in a while, salmon prices
dipped below year-ago levels in June of 2023.
In the latest 52-week view, salmon prices
averaged just 4.9% above year-ago levels.
Crab and lobster prices continued to be
substantially more favorable to the consumer
in the longer and shorter time periods.
Both fresh and frozen seafood managed
flat or increased pound sales in June 2023.
However, deflation pulled dollar sales below
June 2022 levels as consumer demand has
not yet caught up with the deflationary
patterns.
June price per pound, change vs. year ago,
change vs. 3 years ago
Fresh salmon
$11.46 -1.4% +25.5%
Fresh crab
$8.30 -19.2% -14.5%
Fresh shrimp
$9.10 +3.3% +20.8%
Fresh lobster
$7.94 -6.4% +4.8%
Fresh catfish
$7.23 -1.8% +29.5%
Fresh finfish
$10.57, -0.9%, +29.1%
Fresh shellfish
$8.04, -7.3%, -2.1%
Total fresh seafood
$9.28, -3.2%, +14.8%
Total frozen seafood
$7.23, -7.5%, +6.3%
Total shelf-stable seafood
$5.30, +2.2%, +7.2%
Sources: Circana, 210 Analytics
Retailers who
are investing in
crab-focused
promotions have
seen tremendous
success and
they seem well
worth it. "
Anne-Marie Roerink,
210 Analytics
58 - AUGUST 2023
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