Containing increases and more private label products are the recipes of the big European retailers
European large-scale retailers are working hard to limit the passing on of price increases to consumers. This is what Reuters points out, underlining that for many brands this effort is becoming an opportunity to win new customers and retain existing ones: according to the Agency, in the third quarter "same store" purchases - in the same store - increased between 4.4% and 7.4%. As a consequence, compared to 2021, several European chains increased revenues by more than inflation, with peaks of up to 42%. Furthermore, to counter the decline in purchasing power, some brands plan to increase the assortment of private label products, going from the current 33% to 40% on average.
Also in Italy the trend of sales in value measured by IRI for TUTTOFOOD is slightly better than the dynamics of prices. From January to September, the total of packaged food recorded a +5% (against a +4.6% of the average price), exceeding 40 billion euro (40,226 million), while in the month the increase was equal to 10.6% (5,317 million) compared to +9.6% of the average price.
The great classics beat inflation
There are many product categories for which the increase in value decisively beats the high prices in September. Confirming the fact that even in the post-pandemic "comfort food" knows no crisis, Fresh Sweets register a striking +31.7% (average price +4.06%) at 48 million euros while Meats sell for 119 million with an increase of 15.2% compared to an increase in the average price of 11.2%. Pasta, another evergreen of reopenings, whose sales in value increased by 23.6% to 136 million, and Fresh Condiments which rose by 28.7% with sales of 39 million euro were substantially in line with the price dynamics . The data for the month therefore speak to us of a consumer who above all wants to cook quickly and easily, but who does not disdain gratification.
At TUTTOFOOD 2023, at fieramilano from 8 to 11 May 2023, the large-scale distribution and retail world will be in the spotlight in particular at Retail Plaza, the unique format that brings together Italian and international producers and buyers to discuss trends and innovation. Find out here how to exhibit at TUTTOFOOD. click here to participate as a professional visitor instead.
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