Greek supermarkets: New price hikes of almost 10% on shelves – Reduction in consumption

Price hikes are continuing to hit supermarket basket with consumers buying fewer products and pushing for cheaper solutions in order to cope with the new ‘normal’.

January ended with a price increase of 7% in value and 9.8% in units, according to IRI data, with supermarket turnover for the period reaching 652 million euros from 610 million euros a year ago. .

At the same time, however, a decrease in sales volume of 2.5% was recorded. At this point it is worth noting that the fall in volumes this January appears “restrained” by the fact that in the same month in 2022 we had the heavy snowfalls (severe weather front Elpis) which had led (due to the objective conditions) to reduced purchases for some days.

In more detail, due to inflation, food sales increased by 5.7%, personal hygiene and cosmetics by 12.3% and home cleaning products by 11.9%.

It is recalled that in 2022 the total sales of the three main categories in supermarkets (excluding Lidl), based on IRI data, amounted to 8.560 billion euros, compared to 8.059 billion euros during 2021.

There is no end to the price hikes

However, according to information, price hikes in fast-moving consumer goods (FMCGs) continued unabated in February as well.

In the first six weeks of the year (1/1-19/2/2023) in the FMCGs market price increases amounted to 9.9%. Brand name prices increased by 9.7% and private label products by 14.9%.

The decline in dairy continues

The collapse of the dairy market caused by the price spike in 2022 looks set to continue this year.

Specifically, the fall in sales volumes in dairy products stood at – 6.7% in January when sales in value increased by 9.8%.

However, the negative first place in the food category in terms of volume decline was frozen products (-8.2%).

A big drop was also seen in the consumption of breakfast products (-5.6%), as well as packaged foods with -3.2%.

Private label products lift off

In the face of the frenzy of accuracy, consumers are turning to the “refuge” of private label products, the share of which set a new record during the last 12 months, with 17.7%, which is the same as it was during the deep economic crisis in 2012. It is noted that their share increased by 21.3%.

Promotional actions for all food increased this year in January, reaching 24.1%, personal hygiene items and cosmetics decreased with their percentage reaching 29.1%, as well as household items (22.3%).

Hypermarkets are back

Finally, during January 2023, the largest increase in sales was noted in large stores (hypermarkets over 2,500 sq.m.), with a rate of 11%, followed by small stores up to 400 sq.m. with a percentage of 10.5%, in third place were stores with an area of 400 sq.m. to 1,000 sq.m. with a percentage of 6.4% and in last place the supermarket stores with an area of 1,000 sq.m. up to 2,500 sq.m. with a rate of 5%.