The Retail Rundown: Upcoming Lenten Season Lifts Seafood Sales

Trending topics this week include the upcoming Lenten season and inflation as traders assess the latest Consumer Price Index (CPI) report released yesterday.

The Christian Lenten season begins next week on February 22 and will last through April 6. During this 40-day stretch, observers will reduce their red meat consumption. The seafood counter typically stands to benefit from this temporary shift away from meat on Fridays. 

Although Lent is rapidly approaching, retailers have actually reduced their number of seafood feature activities. For the week of February 20, seafood buying opportunities clock in at 23%, down from 31.4% the week prior. Beef narrowly holds the top spot with 29.2%, closely followed by pork with 28.5%. Chicken makes up around 15% of circular ad space...

This Week in Retail: Varying Supplies, Weather Influence Retail Activity

This week, the retail landscape is influenced by an assortment of factors including varying supplies of protein and the weather. 

Looking at pork, hog supplies typically undergo a seasonal expansion from now into the early winter. October is National Pork Month and retailers usually promote pork features to boost sales as more product becomes available.

This year, however, persistent hog disease issues including porcine reproductive and respiratory syndrome (PRRS) have kept supplies relatively snug. 

Hog values have depreciated since mid-summer and the national average hog price is currently down nearly 26% from August. Despite a seasonal correction, hog prices remain elevated at near all-time highs for this time of year. Urner Barry's wholesale pork cutout is down roughly 22% from its summer peak and is now 10% under 2021...

This Week in Retail: This Year's July Fourth Cookout Could be Costlier 

Consumers might sweat when shopping for July Fourth festivities since this year's cookout could be costlier than in years past.

According to data from the Bureau of Labor Statistics, inflation remains elevated at a multi-decade high with the index for meats, poultry, fish, and eggs rising 14.2% over the last 12 months.

Despite higher retail prices and squeezed budgets, most households are forging ahead with their Independence Day plans. According to the National Retail Federation, 84% of consumers plan to celebrate the Fourth this year.

Of those, 59% of people plan to ring in Independence Day with a cookout...

This Week in Retail: Protein Indices Are Above 3-Year Average; CPI Data Released 

In the face of ongoing inflationary pressures along with animal disease issues impacting the protein industry, wholesale beef, pork, and poultry prices continue to reside at or challenge all-time highs. 

In the retail red meat complex, Urner Barry’s weekly retail feature beef index this week averages $6.34 per pound, down $1.02 per pound from a week ago but 6 cents per pound above the 3-year average.

The boxed beef market is currently moving mostly sideways but has dipped to 52-week lows in recent days. Despite this, Urner Barry's Choice and Select cutouts remain at near seasonal all-time highs, second or third to 2021 and 2014....