It’s been a tough 12 months for eggs. A massive Avian flu outbreak that killed 57M birds, coupled with increased demand heading into the holiday baking season wreaked havoc on supply chains and drove egg prices to unprecedented heights. In January, a catastrophic fire at one of the nation’s top egg producers killed over 100k birds, further delaying relief.
Shoppers already coping with inflation and rising prices throughout the stores have been hit especially hard by egg prices, with a YOY increase from $1.93 in January 2022 to $4.83 in January 2023 and an 8.5% increase month over month.
The latest USDA reports show some positive signals, with wholesale pricing beginning to see weekly reductions. Still, even with new flu cases in decline and demand normalizing, it could be months before consumers see prices at local stores return to anywhere near normal.
As a loss leader for many retailers and often priced at a hyperlocal or store level, eggs play an important role in pricing strategy. What can you do as a retail pricing leader to win more trips and increase purchases?
- Improve local pricing visibility
The backbone of a successful pricing strategy is reliable and comprehensive data. Use in-store audits and web scraping to capture accurate and hyperlocalized pricing across your competitive landscape.
- Determine your competitive role
Armed with timely data reporting, you can determine the most effective strategic approach. Do you want to set the competitive pace as a Pricing Leader, or take advantage of market changes as a Fast Follower?
- Optimize Price Image Implement price optimization strategies to preserve or improve upon your Price Image – customers’ perception of your overall pricing – to camouflage egg or other item prices against the larger basket.
With the right competitive intelligence and pricing data science, retailers can accelerate revenue growth, mitigate category-specific cost increases by stabilizing or improving price image while increasing margins, and drive incremental trips. Reach out now to Engage3 to learn more about our Price Image Management platform and how we can help you optimize your pricing strategy.