Americans are still eager to splurge on barbecue this July 4th, even if their wallets are a little stretched.
When it comes to the holidays, consumers are “usually willing to spend,” Katie Thomas, principal at the Kearney Consumer Institute, told Yahoo Finance, noting that lackluster consumer sentiment is unlikely to weigh on food sales.
Overall, Americans expect to spend $9.4 billion on food alone this July 4th, according to the National Retail Federation.
Those expecting meals can expect to spend a little more. A barbecue index from Rabobank Group showed that a 10-person barbecue this year will cost Americans roughly $99, the most on record, with fixings such as beer, beef, soda and lettuce making up nearly two-thirds of the cost. overall cost.
Vacation offers an opportunity to save. The Fourth of July is the most popular day for barbecuing at home. That’s “really good” for consumers, according to Wells Fargo chief agricultural economist Michael Swanson, as food away from home drove overall food inflation higher again last month.
In May, food prices rose 1% year-on-year, while the cost of eating out rose 4% year-on-year. Both were in line with the trends of recent months.
Wells Fargo reported that grilling hamburgers at home for a party of 10 will save hosts nearly $50 compared to eating out, not including tax and tip. To break it down further, the average cost of a hamburger with all the fixings, cheese, lettuce and tomato is $2.15 at home versus $6.95 at a restaurant.
The cost of a barbecue in 2024
The sticker shock will still be present on the registry.
Ground beef is $5.33 a pound this year, up 4.9% from last year, which is “unfortunately growing at an increase from last year,” Swanson said.
Two other popular proteins, frankfurters and chicken, saw prices rise 7.3% and 1.4% year-on-year, respectively.
In terms of filling, the price of lettuce has increased by 1%, tomato prices have increased by 3.9%, and spices have increased by 2%. But cheese prices are down 3.4% from last year.
Chips, on the other hand, rose 2.7% year over year, according to Bureau of Labor Statistics data in mid-June that Wells Fargo reported. Guacamole may be the best decrease this year: it’s down 1.1%, while salsa prices are up 2.5%.
For those with a sweet tooth, it will cost you. Rising sweetener costs are driving ice cream prices 3.3% higher, according to Swanson.
As for drinks, consumers are better off getting 2 liter bottles rather than cans to save, as aluminum has become more expensive. The bill for 2-ounce cans is up 4.8%, while the cost of 2-liter bottles is down 6.5% from a year ago.
And if you’re looking to have a toast with some booze, be prepared to spend a little more. Beer is up 1.2%, according to Wells Fargo, while wine is up 3.4%.
Smart consumers will look for deals
There are still deals to be had, and consumers are searching the stores for the best price, McCormick ( MKC ) CEO Brendan Foley told Yahoo Finance Executive Editor Brian Sozzi.
“The consumer is definitely showing a lot and exhibiting a lot of value-seeking behavior,” Foley said, noting that shoppers are first looking around the perimeter of stores to find deals before heading down the aisle. “They’re really more selective in their price points, and we definitely see that throughout the store.”
Similar to value competition in fast food, grocery stores have increased their offerings to cater to value-seeking Americans.
Walmart ( WMT ) is doubling down on advertising its low-cost everyday model. Target ( TGT ) announced plans to cut prices on 5,000 consumer products such as milk, meat, bread, soda, fresh fruit and vegetables. And Aldi shared its plans to cut prices on 250 items over Labor Day.
Private label brands, as well as wholesalers like Costco ( COST ), Walmart’s Sam’s Club and BJ’s ( BJ ), could be winners in this value-oriented environment.
“You’re just going to see that the consumer is smart,” Thomas said. “They’re going to price shop. They’re going to figure out what they can buy in bulk.” She added that consumers “are not so caught up in whether or not it’s private label. Honestly, it’s quality for the price.”
Private-label merchandise can be a key way to save, Swanson advised, especially for items guests won’t recognize once they’re out of the package.
“Once you put the chips in the bowl, people really don’t know if they came in a private label package or a branded package,” Swanson said. However, “if you keep the drinks in the fridge, when they pick up the can, they definitely see what the brand was.”
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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow him on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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