Reduced sales in value by 1.4% presented the organized market food retail (food stores over 100 sq.m., Mainland Greece & Crete, excluding the Islands) the first quarter of 2022 (YTD data until March 27, 2022), compared to the corresponding period last year.
According to the measurement company NielsenIQthe negative trend in the first quarter is driven by high-speed consumer products (FMCGs) as a whole, as the large categories of fresh and bazaar products show much more modest trends, at -0.3% and + 0.8% respectively.
With regard to the sub-categories of fast consumer goods (FMCG), the food & beverage note more moderate negative trend, at -1.2%, mainly due to food, as beverages and especially alcoholic beverages move significantly more negatively. In addition, the categories relating to personal care products, as well as household products show a decrease in their sales in value compared to the corresponding period of 2021 by -3.5% & -4.8% respectively, as the rationalization of consumption after the eruption of many of them in 2020.
Price increases worry the consumer
According to NielsenIQ, if the negative trend shown by FMCGs as a whole is deconstructed, in sales volume and average price change, there is an increase in prices, with a simultaneous reduction in demand. This reduction, in addition to the rationalization of consumption, is probably also due to the effort of consumers to reduce the expenses they make in the supermarkets, as the wider inflation and the large price increaseswhich have been noted in other product and service categories, such as energy, fuel etc., seem to have reduced to some extent the purchasing power of consumers, even for the basic categories of FMCGs.
At the same time, the consumer is worried about prices, as he feels more than ever that they are on the rise, with a clear increase in the percentage of those who report it (from 72% to 92%) in the annual survey of NielsenIQ Shopper Trends. Indicative of the above is the fact that the course of the share of private label products has now been reversed, reaching 14.2% in the first quarter of 2022 (excluding the Discount channel), an upward trend that began in mid-2021 onwards. when they started to appear general inflationary trends in the market. This is despite the fact that the promotional intensity for Branded products has further increased, which has reached 64.6%, in an effort to keep prices from both suppliers and different retail chains, in the context of very competitive environment in which they move.
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