For the first time in well over a year, price inflation showed signs of cooling. In October, the average price consumers are paying was up only 23 basis points as price increases slow. Promotion frequency increases limited overall price inflation despite continued everyday price increases. Major retailers are helping shoppers fight Holiday Price Inflation with promotions to bring prices on key items to pre-inflation levels.
Retailers Help Shoppers Fight Holiday Food Inflation
As we near the Thanksgiving holiday both promotion frequency and depth of discount are picking up steam. According to research by NielsenIQ, 28% of items sold in the last week were on promotion, up 6.5% from the beginning of October.
Major retailers like Walmart, Aldi, Meijer and more have all announced promotions designed to help shoppers save on their holiday food purchases.
In the weeks leading up to Thanksgiving these retailers have reduced prices on about 3%-3.5% of the items in the store. Promotions were most common in Produce, Prepared Foods, Pantry and Canned Goods categories.
Comparing US Inflation vs. the World
According to recent research by IRI, US prices are rising faster than other major countries around the world. While US prices are rising 13% year over year, most countries are increasing “only” 9-10%. Italy and Spain are the next two countries behind the US with the fastest price increases.
As retailers and brands head into the key holiday selling season, high quality timely competitive data is more important than ever. With a dynamic pricing environment and Holiday Price Inflation, even a delay of a few days in competitive visibility can cost you millions. Engage3 provides the industry’s most complete and comprehensive real-time pricing visibility to ensure your prices are maximizing revenue and margin. Reach out now for a demo of how Engage3 can provide you with real-time pricing visibility.