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Supermarkets: Increasing turnover with declining sales in 11th month 2022

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Supermarkets: Increasing turnover with declining sales in 11th month 2022

With a decrease in sales in Supermarket closed the eleventh month of January-November 2022 compared to the corresponding period of 2021, and the first sales figures for December, a month with traditionally high consumption, are not at all optimistic. Continuation revaluation pushes them more and more consumers in private label products, sales of which “run” much faster than branded goods. In the new year, market analysts look very worried, as the factor of “war” is added to the “election” factor, a process that always disrupts the course of the market.

In the 11 months from January to November, the value of sales in supermarkets increased by 5%, but sales fell by 1.3% and unit prices rose by 6.4%, according to research firm IRI. The share of own brands for 11 months was 16.2%, and sales of the category grew by 15%.

As for December, sales data for 60 major product categories show that, excluding the Christmas week, sales fell even by 4.5%. A 15.6% increase in sales volume was recorded in the pre-Christmas week alone compared to the corresponding week in 2021. In all other weeks, sales fell between 1.2% and 4.5% (the week between Christmas and New Year).

For the year as a whole, always based on data from 60 categories, a 6.8% increase in sales value was recorded in 2022. This increase is partly due to inflation. What made the difference, however, was a 16.8% jump in private label sales in these 60 categories, while branded goods sales grew by 5%. Total sales across 60 categories fell 0.8%, mainly due to a 2.5% decline in brand sales. A further decline in sales was avoided as a 5.2% increase in private label sales was recorded.

The average unit price increased by 7.7%, with an increase of 7.6% for branded products and 11% for private label products. Due to repricing, as well as a different brand-private label ratio, the average basket value was €187.93 in 2022 compared to €173.90 in 2021, i.e. an increase of 8.1%. The value of the “basket” of only branded goods increased by 8.8%, to 197.80 euros in 2022 from 181.83 euros in 2021, and by 10.4% of the “basket” of own brands, to 137.52 euros from 124 .57 euros in 2021.

Author: Dimitra Manifava

Source: Kathimerini

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