June 14, 2019
Driving shopper traffic, particularly for stock-up trips, is critical in today’s highly competitive retail environment. Top-line sales in this low-margin business are paramount, whether made in-store, via website or app. While beef continues to propel meat department performance, this article looks at how beef continues to drive total store revenue, as well.1
Amongst proteins, beef reigns. It brings in more dollars than any other item at retail (2.1% of total), while nearly 6.3% of baskets include beef.2 This makes beef a formidable revenue generator in its own right. Further, the average basket with beef is more than twice that of the typical ring ($85.70 vs. $41.33, respectively). So, bringing in beef shoppers generates greater sales across the entire store, as well. This power to drive sales is one reason beef remains a favorite feature item for retailers as well as their shoppers.3
Source: IRI Panel Data, All Outlets, 52 weeks ending 1/6/19, Market Basket Study, February 2019.
Chart 2 shows the share of trips where carts contain beef, chicken or beef substitutes, as well as the respective products’ share of total basket dollars. Note that beef is in the cart much more frequently, and that respective product sales are substantially larger, as well. Given these measures and average basket size, Chart 3 shows that baskets with beef drive 44% more total store sales than baskets with chicken and 21 times the total store sales as baskets with beef substitutes. So, while beef substitutes (and occasionally chicken) may grab headlines and add product options, beef drives sales.
Source: IRI Panel Data, All Outlets, 52 weeks ending 1/6/19, Market Basket Study, February 2019.
Source: IRI Panel Data, All Outlets, 52 weeks ending 1/6/19, Market Basket Study, February 2019.
Consistent with prior research, beef continues to drive more total store sales than other animal proteins.4 Today, this is still the case. With its various cuts and preparation options, for the grill, skillet, slow cooker, oven and beyond, beef gives consumers the flexibility to meet their everyday to celebratory needs while driving total store sales, as well.