Deli, meat departments post strong June sales

Supermarket deli sales continued their strong performance in June, as consumers spent heavily on prepared meats, specialty cheese, and party trays, according to the latest report from 210 Analytics and Circana.

Fresh meat sales also did well, driven in part by some beef price inflation and strong sales of chicken, turkey, and exotic meats.

The Thursday timing of the July 4^th holiday meant that many consumers shopped heavily for barbecue and picnic items mid-week, pushing sales into July instead of June, but it appears that other celebrations such as Father’s Day and graduations helped drive sales for most of the month.

In addition to gains in deli and meats, fresh produce also had a strong performance, and several frozen categories also performed well. 

Deli sales continue their hot streak

The deli department posted an overall sales gain of 3.2% in June, reaching $4.3 billion. That included a 5.1% increase in sales in the deli prepared category, as sales of prepared meats were up 12.4% compared with a year ago, and sales of entrées, sandwiches, sides, pizza, combo meals, and desserts also posted solid sales growth.

“The deli department fired on all cylinders,” said Anne-Marie Roerink, principal and founder, 210 Analytics, and author of the reports.

She also cited strong growth in specialty cheese sales, which were up 3.6% in June, and a 3.7% gain in deli entertaining, including an 11% increase in sales of deli trays.

Inflation impacts fresh meat sales

Total dollar sales in the fresh meat department were up 3.7% in June, to $5.6 billion, compared with a year ago. The gains were driven in part by inflation for fresh beef, which saw dollar sales increase 5% despite a 0.3% decrease in pounds sold.

Similarly, bacon sales were up 6.4%, while pounds sold fell 4.6%. The price per pound for bacon was up 11.5% in June, compared with June of last year.

“This is a reversal for bacon, which had been experiencing deflation throughout much of 2023 and the early part of 2024,” said Roerink.

Pork sales, buoyed by 7.1% inflation, saw dollar sales gains of 0.8%, despite a 5.8% decrease in pounds sold.

Fresh chicken, meanwhile, posted solid sales gains in both dollars and pounds, with dollar sales up 2.6% and pounds up 2.2%. Turkey, lamb, and exotic meats also posted gains in both dollars and pounds.

Melons, grapes, and mandarins propel produce sales

Consumers spent big on the season’s fruit and vegetable offerings in June, as total fresh produce sales were up 2.1% to $7.6 billion. That included a 3.4% increase in sales of fresh fruit and a 0.7% increase in sales of fresh vegetables.

Prices eased on many produce items compared with a year ago, and pound sales increased faster than dollar sales for several of the top sellers. Melons, for example, saw dollar sales grow 4.1% on a 7.6% increase in pounds sold, and dollar sales of grapes were up 5.9% on a 17.5% increase in pounds sold.

The surge in grape sales may have been partly driven by a TikTok trend showcasing the appeal of eating frozen grapes as a refreshing snack, Roerink said.

Other strong performers among fruits included mandarins, which saw dollar sales gains of 23% on an 18.8% increase in pounds sold. Both berries and apples saw strong sales gains in terms of pounds, but soft dollar sales as prices declined vs. a year ago.

Tomatoes, lettuce, onions, peppers, and cucumbers were top sales performers in the fresh vegetable category in June as the season for salads and grilling kicked off.

Desserts, processed meats drive frozen sales gains

A 3.7% increase in frozen dessert sales in June helped the frozen foods department post dollar sales gains of 1.9% in June. Sales of processed meat grew 9.5%, and frozen baked goods notched sales gains of 6.3%. Frozen fruits and vegetables also performed well, with dollar sales up 2% for the month.

“Frozen food sales are back in the black and growth is accelerating,” said Roerink.

Sales in the largest frozen category, frozen meals, were flat at about 0.2% growth, however. Dollar sales of frozen seafood were down 3.8%.

Dollar sales of fresh seafood, meanwhile, were down 3% in June, and sales of shelf-stable seafood rose 3%. Fresh shellfish faced difficult comparisons with the strong sales in June of a year ago and posted dollar sales declines of 9.3% on a 7.2% decrease in pounds sold.