According to a recent market analysis report, retailers are cutting down on promotions because Thanksgiving items are running out.
The supply chain issues are impacting stores across the country with supermarkets and stores making adjustments with what is available, and consumers rushing in and purchasing early on to ensure enough supply before shelves turn empty.
The availability, demand, price, and promotion of holiday-related items are tracked by IRI to gauge their availability, demand, price, and promotion for the two holidays that drive the most sales for retailers. The top 25 Thanksgiving-related product categories account for 81 percent of the sales lift typically seen in the four weeks leading up to the holiday.
The sales increase was 63 percent for the three-week period, compared to the previous years average of 45 percent. The last week of October saw sales go up by 86 percent, when it is historically around 54 percent, indicating that shoppers are heading to the markets earlier than usual. The main categories of sales are food items.
The availability of bakery pies was between 5 and 11 percentage points lower than a year ago, according to an IRI report issued last month.
The products are getting harder to find than in the past. Low stock availability was registered for liquid gravy. Liquid gravy was down nine percentage points over the last two months.
Despite continued demand, meat and pies went down in stock the most.
The company found that supermarkets were running between one and nine percentage points fewer promotions this year compared to last year. In the categories with frozen pie/pastry shells, the prices have gone up by six percent.
High and mid-income shoppers tend to shop ahead of time and stock up when they have time, compared to low-income shoppers who make purchases closer to Thanksgiving. During the holiday season, all income groups stock up on pies, baking products, and beverages.
As retailers manage their deplete their inventories, shoppers may need to find substitute products like fresh for frozen desserts.
By Naveen Athrappully
