Wells Fargo analysts predict challenging start to 2024 for US seafood at retail after bright holiday season

Published 2024년 1월 8일

Tridge summary

Following a successful holiday season, U.S. retailers may face a tougher year ahead due to decreased demand and increased costs throughout the seafood supply chain. The economic backdrop remains favorable for consumer spending, but recent data suggests that seafood sales have declined significantly, with higher retail prices due to increased supply chain costs. This has led to a cycle in which demand declines as prices rise, resulting in lower sales and a build-up of inventory.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After a lucrative holiday season to end 2023 for U.S. retailers, some analysts are forecasting a tougher year ahead for the industry, with seafood sales likely to suffer from decreased demand due to higher prices and increased costs throughout the supply chain.U.S. retail sales excluding automotive products rose 3.1 percent from 1 November through 24 December, according to preliminary data from Mastercard SpendingPulse. Notably, restaurant sales surged 7.8 percent during the holiday season, and grocery sales rose 2.1 percent.“This holiday season, the consumer showed up, spending in a deliberate manner,” Mastercard Economics Institute Chief Economist Michelle Meyer said. “The economic backdrop remains favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.”However, the robust sales may have been an anomaly, according to recent data. U.S. seafood wholesale prices on average have declined from ...

Source: Seafoodsource