let's talk turkey: thanksgiving pricing study

Let’s talk turkey: Thanksgiving pricing study

Jennifer Bartashus, Bloomberg Intelligence analyst

Thanksgiving dinner will cost about 1.58% less than last year, driven by lower turkey prices and higher promotional discounts, according to a Bloomberg Intelligence pricing study. The average price for national-brand turkey declined to $1.22 a pound from $1.30, while the price for organic birds rose to $2.24 a pound from $2.12.

The study contained a basket of 20 holiday-related items at 14 retailers, including specialty stores, supermarkets, mass merchants, limited assortment and warehouse clubs.

Whole Foods organic Thanksgiving costliest of specialty grocers

Shoppers wanting a primarily organic Thanksgiving will pay the most at Whole Foods, $107.52 for a 20-item basket, compared with Fresh Market ($101.83), Fairway ($83.49) and Trader Joe’s ($72.28). The average basket cost for specialty retailers was essentially flat vs. last year, down 0.18%.

These specialty grocers and supermarkets, such as Fairway, with an expanded organic assortment offer a higher percentage of fresh and organic foods, appealing to an increasingly health-conscious consumer base.

Acme Thanksgiving prices drop most as new stores seek traffic

Albertsons’ Acme chain led retailers in lowering the cost of Thanksgiving dinner, according to a Bloomberg Intelligence pricing study. The retailer has focused on lowering prices and is running high-discount promotions on holiday items to help drive traffic into stores, many of which were recently purchased via A&P’s bankruptcy.

Acme’s prices dropped 9.76% vs. 2014. Ahold’s Stop & Shop’s prices were 3.96% lower, followed by ShopRite (down 1.82%) and Trader Joe’s (1.78% lower).

Aldi gobbles up competition in discount food for Thanksgiving

The cost for Thanksgiving dinner is cheapest at Aldi, among a group of 14 retailers, at $42.56 for 20 items, including a 12-pound turkey, potatoes, cranberries and corn. This beats SuperValu’s Save-A-Lot ($52.94).

These limited-assortment stores focus on high volume sold of fewer items, allowing them to often have lower prices than mass merchants Wal-Mart and Target. Both Aldi and Save-A-Lot offer predominately private-label items, which tend to be less expensive than national-brand equivalents.

Organic egg prices slip as bird flu lifts national, store brands

The average retail price for a dozen organic eggs is down almost 10% from last year, bucking the trend of higher prices on national-brand eggs (15% higher) and private label (36% higher).

Egg prices have been pressured by the lingering effect of an avian flu outbreak earlier this year, which has affected the short-term egg supply. Production for October and November is estimated to be about 4% lower than for the same months last year, according to the USDA.

Thanksgiving turkey prices down 6% as retailers push promotions

The average cost of a 12-pound brand-name turkey is about 6% lower than last year. The average price per pound dropped to $1.22 from $1.30. In contrast, the price for organic birds, which tend to be sold fresh, not frozen, rose to an average of $2.24 from $2.12 a year ago.

As the centerpiece of a Thanksgiving meal, retailers will often keep turkey prices low, reducing their profit margin, to encourage shoppers to do the rest of their holiday shopping with them and spend more on their overall basket.

Bloomberg Intelligence offers valuable insight and company data, interactive charting and written analysis with government, credit insights from a team of independent experts, giving trading and investment professionals deep insight into where crucial industries start today and where they may be heading next.