The U.S. Department of Agriculture is forecasting a 2 to 3 percent increase in food prices this year, after they soared 3.9 percent in 2020.
Consumers around the world are paying more for their food as manufacturers deal with rising transportation and packaging costs due to the COVID-19 pandemic, according to Bloomberg.
“People will have to get used to paying more for food,” Sylvain Charlebois, director of the Agri-Food Analytics Lab at Canada’s Dalhousie University, said. “It’s only going to get worse.”
An increase in food prices could affect future consumer spending, Charlebois said. But thus far, higher prices haven’t impacted grocery sales, as several leading U.S. food retailers posted higher sales and earnings in Q4 2020.
Walmart, Target, and other major retailers posted significant sales growth – especially in e-commerce – in their most recent quarterly and year-end earnings.
Walmart’s U.S. e-commerce sales surged 69 percent in fiscal year 2020, and its total revenue soared 6.7 percent to USD 559.2 billion (EUR 463 billion). Sam’s Club comparable sales also increased 11.8 percent.
Walmart’s U.S. grocery sales increased by “high single-digits,” per Grocery Dive, benefitting from expanded store hours and better in-stock levels.
Online grocery orders for store pickup and delivery hit sales volume records, according to Walmart. The retailer said it expects continued e-commerce growth after it dropped its USD 35.00 (EUR 29.00) minimum requirement for express delivery of groceries and other items.
Target also realized a 19.8 percent surge in sales in 2020 to USD 92.4 billion (EUR 76 billion) and a spike of nearly USD 10 billion (EUR 8.3 billion) in digital sales, the retailer said in a news release.
Publix’s sales surged 17.7 percent to USD 44.9 billion (EUR 37 billion) for final year 2020, while comparable store sales increased 16 percent.
Grocery Outlet, which opened eight new stores last year, realized a net sales increase 23 percent and comparable store sales spike of 7.9 percent.
Sprouts Farmers Market sported a net sales increase of 15 percent while comparable store sales grew 6.9 percent in 2020. Sprouts also plans to open two new fresh distribution centers in Colorado and Florida this year, The Packer reported.
Retailers also posted record seafood sales in 2020, according to data presented at the recent National Fisheries Institute’s Global Seafood Marketing Conference.
Frozen seafood sales soared 35 percent to USD 7 billion (EUR 5.8 billion), fresh sales rose 24.5 percent to USD 6.7 billion (EUR 5.6 billion), and shelf-stable rose 20.3 percent to USD 2.9 billion (EUR 2.4 billion), according to 210 Analytics Principal Anne-Marie Roerink, citing data from IRI Worldwide.
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