Barbecues don’t solely belong to summer anymore. As more consumers, especially those from younger generations, continued to grill on Labor Day and throughout the fall, grocery stores are encouraged to keep their meat cases stocked all year round and meat retailers have visible opportunities to boost their revenue.
In addition to the increase in year-round grilling, there are many other factors that are leading to a demand for meat. In order to use these factors to their advantage and create more revenue opportunities, meat retailers need to forecast around consumer and grocer habits.
Using forecasting to create revenue opportunities
Here are a few trends that are currently helping meat retailers improve their bottom line:
Sam’s Club is purchasing more premium beef
In order to keep up with their consumers’ increase in year-round grilling, Sam’s Club is offering USDA prime beef in all of its stores. While this might seem like a risky strategy, it is paying off handsomely for both Sam’s Club and other meat retailers.
This high-grade meat is pricier than other types of meat, and the demand from grocery stores like Sam’s Club means that meat retailers are able to raise prices, increasing their revenue.
The booming economy is leading to more meat purchases
Because consumers have more confidence in the economy, they dedicate more of their grocery budget toward buying meat. Whether these consumers are buying higher grade meat or just more meat in general, this shift is leading to plenty of revenue opportunities for meat retailers.
Keeping an eye on the current economy and how it influences consumer spending is important for any meat retailers who want to make sure they stay profitable all year long.
Retailers are influencing customer buying with sales and website recipes
Ads and newsletters from grocery stores offering sales on meat and encouraging consumers to grill with their friends and family lead to an increase in meat purchases. Additional tactics used by grocers, like listing recipes on their website, which over 24% of consumers use for grilling ideas, also helps consumers determine which products they purchase.
In order to predict which meat items might be of interest to the consumer and capitalize on these tactics, meat retailers can forecast around grocery store ads and promotions and optimize purchasing decisions.