Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
Get your shopping lists ready: We’re officially entering the slightly chaotic two-week period when consumers stock up on groceries for Thanksgiving.
Shoppers spent $2.4 billion more on Thanksgiving fare last year than on an average week, with 82% of purchases occurring the week before and week of the holiday, according to Circana’s Thanksgiving Outlook.
This year, surveys conducted by Circana found that 34% of consumers are anticipating spending more $$ on their Thanksgiving haul, but that won’t impact the amount they buy. Inflation on Thanksgiving essentials is cooling, however, with this year’s prices 2% above last year’s (but up 26% since 2020). Prices are down 2% for turkey and beverages, and up for sides (4%), pies (2%), and baking items (3%).
Like last year, consumers are still looking for deals: Of those celebrating the holiday, 38% will buy items then and there if they spot a sale or have a coupon. This is especially likely among households with young children, Circana found. Two-thirds of consumers will also save $$ this season by trading down—with 22% saying they’ll opt for store brands over name brands and will substitute cheaper products for their typical purchases. Nineteen percent said they’ll buy more value-sized items, while 16% said they’ll buy smaller products.
Consumers are “more relaxed” regarding their shopping this year, Circana noted, as sales across many key Thanksgiving categories like stuffing mixes, pie and pastry shells and filling, and cranberry sauce were down as of October 20 compared to 2023, indicating that shoppers aren’t shopping as early as they previously had.
Fewer people (61%) are celebrating in their own home, making host gifts a potential marketing opportunity for retailers, Circana said. About 20% of survey respondents said they planned to buy a food/beverage or wine/liquor as a gift, anticipating spending $167 and $143, respectively.
Strike a meal: A Numerator holiday survey found 63% of consumers plan to spend between $50 to $200 for their celebrations, and nearly three-fourths of consumers will head to grocery stores for their Thanksgiving shopping, while about half will go to big box retailers. Retailers have dropped the price tags on their Thanksgiving meal deals even lower this holiday to accommodate shoppers’ restricted budgets. Target lowered its four-person meal deal from $25 to $20 this year, and deals from Aldi ($47 for 10 people) and Walmart ($45 for four people) are also cheaper than they were last year, Morning Brew previously reported.