Supermarket

Outrageous discounts are the first "mystery" in the Greek market, with supermarket chains successively advertising 50% off specific products. Are they selling below cost to drum up new custom? Probably, but then we see those same products going for half-price at every other supermarket. 

For a long time now, the media has been commenting upon the "inflation rally" in supermarket prices. Every day, an unpleasant surprise awaits us on the shelves and then at the supermarket checkout. You count the products in your shoppong basketasket and add up the cost and you're shocked.

Supermarket sales grew 9.1% in the first four months of 2023 but volumes fell by 3.5% in the same period, a report by NielsenIQ said on Tuesday.

The report said that foods/beverages (8.9%) and packaged foods (9.3%) led the sales growth in the January-April period.

Consumers are increasingly turning to private-label products at supermarkets, as food inflation remains high.

According to data, sellers' own products have seen their market share grow by as much as 6.6 percentage points compared to last year.

The soaring retail prices of milk have led to a further decline in the consumption of the commodity this year, by 5.3% in sales volume terms in the year to April, following the drop registered for the first time in 2022.

Inflation has forced consumers to cut down even on basic food items, also switching away from branded products toward supermarkets' private label offerings.

Supermarket turnover grew 8.2% in the first quarter of 2023 compared with the same period in 2022, NielsenIQ said in a report released on Friday. 

The report attributed this positive development to an 8.1% rise in fresh food and an 8.2% increase in packaged food and beverage. The personal care category recorded a 7.6% increase in turnover while house products grew 12.1%. 

In the UK, the price of staples such as cheddar cheese, white bread and pork sausages has jumped by up to 80% in some shops over the past year, further evidence of how inflation hits the lowest incomes hardest.

Oatmeal topped the list for average price increases in the "Which?" consumer basket of staples, followed by skimmed milk and cheddar cheese.

The decline in supermarket sales volume has continued unabated in 2023, with data from market research firms showing that this drop reached 1.7% in the first quarter of the year.

At the same time, turnover has shown an increase of 8.9%, with the growth being purely inflationary, since the increase in prices per item came to 10%. 

The share of private-label products reached historic highs in the first two months of 2023, with consumers looking for cheaper solutions due to inflation, while their participation in the Household Basket measure has been considerable.

Turkey's unusual request that its retailers partially freeze prices ahead of elections has prompted some supermarkets and industry groups to warn they could only do so for a short period.

Finance Minister Nureddin Nebati asked clothing and shoe stores to launch their discount season well ahead of usual March after grocers had done the same.