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
Diving further into the latest data, baskets including steak top out at nearly $92, while baskets with Ground Beef average nearly $89. In comparison, a basket with chicken comes in shy of $85, and for all the recent headlines, baskets containing beef substitutes (such as plant-based burgers and veggie crumbles) are the smallest of those measured, at just under $82 (Chart 1). Chart 1 further shows that baskets with Ground Beef and steak generate the most other-product sales, while steak and Total Beef carts have the highest “target product” sales (e.g. steak at $15.47). This is expected, as steak is a relatively high-priced item whereas Roasts (included in Total Beef) tend to be larger in size.
To read the rest of the story, please go to: Beef Checkoff