Supermarkets: “price fire”

The cost of items in the Family Basket increased by 9.5% in the first five months of 2023. The record was broken by dairy products.

Galloping inflation doesn’t seem to surprise anyone anymore, and has already become a phenomenon, as they say, “in the order of things,” as the repricing of products in the “family basket” of supermarkets continues. And according to experts, no decline is expected in the coming months.

Even as prices for energy, transportation and raw materials have fallen, prices for food, personal care and household items continue to burn holes in household budgets.

The monthly CIRCANA (formerly IRI) survey is revealing. Inflationary growth in the cost of consumer goods amounted to 9.9% in the five months of 2023 (January-May), while sales increased slightly – by only 0.4%.

Overall, consumer goods sales for the five months from January to May amounted to 3.664 billion euros, compared to 3.335 billion euros in the corresponding period of 2022.

The figures for May “exceeded all expectations and forecasts.” Sales value increased by 12.4% and volume by 4.1%, also indicating a price flurry.

Despite the fact that the purchase prices in farms on cow milk fallingin May dairy products reached a record price increase of 14.5%. However, sales fell 1.9%.

Detergents and household chemicals came second in terms of price growth, up 13.7%, although volume losses were very small (0.4%). This is followed by various household items with +11.9% and personal care products with +10.7%.

In culinary (culinary supplies and condiments), the price increase was 10.6% with a decrease in sales to 3.5%, while frozen food rose by 9.7%, and personal care and beauty products by 8.7%.

Sales growth packaged food amounted to 8.3%, snacks – 7.7%, soft drinks – 7.3% and alcoholic beverages – 5%.

Meanwhile, according to Circana, private label products are gaining more and more consumer attention every month due to moderate prices.

Their market share – excluding sales from discount chain Lidl – is 17.4%, and the growth rate is 19.4%, the highest since 2012.

It is worth noting that a higher growth in private label (private labels – products packaged by the supermarket itself and having a label with its logo) was recorded in Greece only in 2011 (up to 34.5%) at the height of deep economic crisis.

At the same time, as noted, commercial offers (shares) were strengthened for everyday goods. In particular, in the category of food, the percentage reached 27.6%, in the category of personal care products – 30.7%, which decreased compared to 2022, and in the category of household items, it reached 25.2%, which also decreased compared to 2022. with the previous year.

Overall, according to Circana, 27.4% of five-month sales came from discounted goodswhich is 2.3 percentage points more.

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