PROMOTIONS: Percentage of sales sold on promotion still well below pre-pandemic levels
The percentage of sales sold on promotion is also still well below pre-pandemic levels, notes Bernstein: “The % of total food sales in US measured channels currently sold on deal is 24.4%, well below the 31% seen in 2019. This has likely been a tailwind to pricing, since promotional spend is deducted above the net revenue line.
“We believe this level is unsustainable and as supply chain bottlenecks subside we expect promotional spending to revert towards more normalized levels (albeit perhaps not back to pre-pandemic levels when much promotional spending probably didn't pay off).”
