Consumers are still eating at home more than they did before the pandemic, but the sales of certain pantry-loading staples are starting to slow down, according to the CEO of Albertsons.
Meat, seafood, breakfast cereal and wine are still selling well, but staples like canned soup, pasta and pasta sauce are faltering a little, Vivek Sankaran, CEO of the supermarket chain, said during an earnings call. Albertsons posted growth of 11.8% in the quarter ending in February over last year.
Supermarkets, however, are going to have a tough time with the current quarter’s results, which will be compared to the beginning of the pantry-loading period. Inflation will be another challenge, with prices jumping in March 3.3% for food at home, and 3.7% for food away from home. Sankaran said that increases of up to about 4% could be absorbed by retailers, but anything higher than that would prompt “difficult conversations” with processor-suppliers about prices.
