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Grocery shoppers are swapping cans and bags of dried beans for specialty chocolate and gourmet pasta sauce as coronavirus cases rise across the country, new research shows.
In the first months of the pandemic in the spring, Americans filled their grocery carts with bulk purchases of food and basic items, and grocers rushed to restock empty shelves. In recent weeks, however, consumers have turned to high-end purchases such as premium coffees, cheeses and frozen meals instead of value brands or private labels, the research firm said. IRI market.
Sales of high-end and super-premium packaged goods increased 1.7% at retailers year over year for the 26 weeks ending Oct. 4, according to IRI data. The percentage may seem small, but it is a notable shift in the multi-billion dollar consumer packaged goods industry, where competitors compete at only tenths of a percentage of each other.
This trend has continued in recent weeks and is consistent across households of all income levels, said Krishnakumar Davey, president of strategic analysis at IRI.
Davey said people have turned to specialist articles to break out of boring routines and try to turn even weekday dinners into an experience. Plus, he says, people spend their money in different ways because they can’t travel, go out to dinner with a group of friends, or go to the movies.
“People don’t have much more money to spend so they have the money and they eat well,” he said.
He said it was a relatable feeling to afford a little luxury during a stressful time.
“Everyone wants an indulgence,” he says. “I know some tough days I’ll go treat myself to a nice cup of ice cream.”
Almost every state nationwide is reporting an increase in Covid-19 cases and hospitalizations. The United States reported more than 143,231 new cases on Wednesday, setting a new one-day record high, according to CNBC analysis of data compiled by Johns Hopkins University. That brings the seven-day average to over 127,400, up almost 35% from a week ago.
More than 65,300 people are currently hospitalized with Covid-19 in the United States, more than at any time during the pandemic.
The significant increase in the number of cases has led to grim decisions that are reminiscent of the most difficult and deadly weeks of the spring outbreak. In El Paso, freezer trucks were brought in to serve as temporary morgues. In North Dakota, fear of a staffing shortage has prompted the governor to change the rules to allow asymptomatic coronavirus-positive healthcare workers to continue working in Covid units.
The growing number of cases has raised concerns among some grocers that shoppers may “panic” like they did in the spring. Some grocers have already taken steps to try to prevent storage.
Kroger, the country’s largest supermarket operator, has added limits for certain online and in-store household purchases. As of last week, customers are limited to purchasing up to two of certain items, including toilet paper, paper towels, sanitizing wipes and hand soap. At Texas Grocer HEB, customers cannot purchase more than two of certain items at a time, including disinfectant sprays and breast packs.
In a typical recession, according to IRI research, Americans tend to trade with cheaper brands such as private labels of grocers, buy smaller packages of an item, and treat themselves more. reduced – like buying a box of chocolate truffles instead of a Hershey. bar.
However, Davey said recent buying data only showed the third trend. He said households – even those on low incomes – may feel comfortable spending more on high-end items as they have cut spending in other categories as they mostly stay at home.
He said a pattern has been repeating itself from the early months of the pandemic: people are buying a few more paper towels and toilet paper.
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