Consumers continue to put fewer and cheaper groceries in the supermarket basket because, despite declining inflation, the prices of food and other basic household items remain extremely high, while prices are actually rising, albeit at a lesser rate. compared to last year, continuing in several products. So, although according to the latest data from NielsenIQ, turnover in supermarkets increased by 9.1% in the first quarter of the year, sales fell by 3.5%. The increase in turnover is mainly driven by food and beverages, bulk and standardized, which saw sales increase between January and April 2023 by 8.9% and 9.3%, respectively. At the same time, sales of goods that are now considered … luxury, even if they relate to oral hygiene or home care, are significantly reduced. Typical examples now are oral care solutions, which recorded a decline of 8.2%, and furniture care products, which saw a 5.1% decline in sales.

In an effort to cope with rising prices, seven out of ten consumers in Greece say they will cut unnecessary spending and buy only the essentials, according to related research by NielsenIQ. In addition, one in three say they will now choose cheaper brands.

After all, it is no coincidence that the market share of private label goods is set at 25% in the first quarter of 2023 (including sales of the largest discount chain Lidl), which is an all-time high. Consumers, in fact, say they choose private label products not only because of their relatively low price (58% buy them for this very reason), but also because more than 75% of respondents consider them to be of the same quality as and branded goods.

Luxury & Hygiene – Mouthwash sales fell 8.2%.

As NielsenIQ points out, although private label products have more than doubled in price on average compared to branded products, they manage to maintain their sales volumes without showing losses, proving consumers are shifting towards low-cost alternatives that will minimize their total expenses.