CGA: On-Premise Velocity Above 2019 in All Key States

On-premise velocity continues to trade higher than 2020, up +60% year-over-year for the week ending August 7, 2020, according to market research firm CGA.

Across all observed states (Florida, Illinois, California, New York, and Texas), value and sales velocity also outperformed the same time in 2019, as 100% of states now have bars and restaurants open indoors with no capacity restrictions.

However, growth may be leveling off as daily velocities across all states fluctuated between -11% and +8%, and all key states experienced flat or negative trends last week compared to the previous week.

“Average outlet sales trends have begun to level off in the last two weeks, following months of growth, and still remain strong versus 2019,” Matthew Crompton, CGA Client Solutions Director, Americas, said in a release. “COVID-19 has had a significant impact on consumer behaviors, and with restrictions lifted and consumer confidence increasing, suppliers and operators will need to identify how to maximize the opportunities these trends present.”

Texas reported the largest growth with sales velocity up +25% compared to August 10, 2019, despite negative trends (-4%) in the week ending July 31, and flat trends in its cities during the week ending August 7, including Houston (+2%) and Austin (+1%). Sales velocity in the state is up +47% year-over-year compared to the same week in 2020.

Similarly, Florida recorded the biggest declines over the last two weeks, declining -3% and -4%, respectively. Nevertheless, Florida still outperformed other states in sales velocity compared to August 10, 2019, (+21%). Year-over-year, sales velocity in Florida is up +66% versus the same week in 2020.

New York (+84%) and California (+85%) — which instituted some of the most stringent COVID-19-related restrictions in recent weeks — continue to perform well compared to 2020. New York remained flat week-over-week after recording negative trends (-4%) during the week ending July 31. The state reported similar sales velocity to 2019, +1% last week versus August 10, 2019.

Sales velocity remained positive in California (+20%) compared to the same time in 2019, despite negative trends in its cities last week compared to the week ending July 31, 2021, including in San Diego (-5%) and Los Angeles (-5%).

After four consecutive weeks of growth, Illinois was down -3% compared to the week ending July 31, 2021. Sales velocity is now up +3% versus August 10, 2019, and up +66% compared to the same week in 2019.