operate in this higher demand environment,” CFO Kofi Bruce said on a call with analysts.
Prices consumers are paying have also increased.
Consumer prices for March rose 2.6% compared to the same month last year, the Bureau of Labor Statistics said last week. In March alone, consumer prices climbed 0.6% from the month prior, the largest monthly increase since 2012.
Shoppers Continue to Buy, Despite Higher Prices
Shoppers have not shown much resistance because amid the public-health crisis there was a perception of scarcity of certain items, and many people were prioritizing safety and convenience over getting the best deal. The result is that the packaged-goods industry has already benefited significantly from reduced discounting and a willingness by shoppers to spring for fancier items.
In the four weeks ended March 2021, market research firm IRI reports there was a 5.1% increase from 2019 levels in edible items sold in stores and online. But sales revenue was up 16.6% from 2019, reflecting price increases and trade-ups.