ECR Hellas: The challenges for the supermarket and food industry

The annual Ordinary General Meeting of the “Hellenic ECR Committee” was held online on Wednesday, March 23, 2022, with the participation of about 100 executives of the member companies of the Association. welcoming the members referred to another difficult time that the industry is going through, having to deal with the problems arising from rising inflation (price increases), energy costs, supply chain disruptions, the recent war, inadequacy not only products but also logistics, but mainly in the pressure and uncertainty that consumers feel.From the writing samples that the industry has shown in other difficult times, it is certain that both retailers and suppliers will make every effort to secure the next day and support the consumer.

Alexandros Daniilidis: The plan for the two years 2022-2023

For his part, Alexandros Daniilidis, CEO of Athenian Brewery and President of ECR ​​Hellas on the part of suppliers referred to the actions implemented in 2021 with the most important completion of the work of three working groups on issues such as Category Growth Management, Digital Retail Models of the Future and Consumers Go Circular with significant results and material sent to all members. He then referred to the planned actions for the two years 2022-2023 that concern three axes:

1. education continuing the cooperation of ECR ​​Hellas with the ELTRUN laboratory of the Athens University of Economics and Business implementing two more webinars on Circular Economy & Environmental Sustainability (01 & 08. 06.2022) and e-Commerce & Logistics (22 & 29. 09. 2022 ). At the same time, through the ECR Community platform, member companies are given the opportunity to attend webinars on topics of interest to the market.
2. the surveys having planned two surveys on Consumer Trends & Behavior in three dimensions (Health & Wellness, ESG, Ways and media) and E-commerce supply Chain Valuation
3. the new working groups on Food Waste and Future Physical Store.

IRI Greece: Market signs in the first nine weeks of 2022

Then, Panagiotis Boretos, CEO of IRI Greece, in a presentation on market trends in the first nine weeks of the year and the consequences of inflation said the following:

– In 25 best-selling categories in FMCG there is a development of 46.6% and a price increase of 2.3%
– There is an increase of 15.9% in the market share of Private Labels compared to 14.9% in the corresponding period of 2021
– In the first week of March there was a 21.1% increase in sales for FMCG products while Private Labels recorded an increase of 43.5% over the same period
– Provided that prices remain at 2021 levels, a downward trend in sales value in 2022 is forecast.
– The demand curve will be shaped by the tension between rationality and reality as perceived by the consumer
– Inflation reduction strategies must take into account in addition to packaging redesign other strategic development options such as trust, brand equity, innovation, sustainability
– The inflation recorded is an imperfect inflation and that is what differentiates it from inflation increases in the past
– Forecasts show that the effects of inflation will not be temporary
– Consumers do not recognize marginal price increases, need a “Sticker Shock” and it usually takes 9-12 months before their buying and consuming behavior changes
Exploring the consumer’s ability and willingness to buy and spend is a good measure of the extent of change that is likely to be seen in purchasing and consumer behavior.
– Premium, mainstream and private labels products are equally vulnerable
Absolute impossibility of using proven forecasting models makes it difficult for suppliers and retailers to make decisions and implement actions
High-yielding brands that have performed well in difficult inflation times implement short-term business strategies to adapt to short-term strategies without losing consistency with their long-term strategies.

Increase in sales value by 68% in electronic supermarkets

Panagiotis Gezerlis, CEO of Convert Group stated the following:

– We have seen a 68% increase in the value of sales in SM electronics (compared to 2020) and 34% in the last 12 months
– There was a drop of 3.7% in the first quarter of 2022
– The 3rd in online sm sales did not exist last year
– 94% of the baskets now contain fresh products
– The rise of quick commerce is leaps and bounds
– The questions that companies should answer regarding e-commerce are related to the correct calculation of their e-sales in relation to total sales, the image of the e-shelf and the products in it as well as the relationship they have with marketplaces

IELKA: 59% of a consumer’s expenses goes to supermarkets – The main factor in choosing purchases is money

Closing the presentation section, Lefteris Kioses, General Manager of IELKA (Consumer Goods Retail Research Institute), presented results from the IELKA Annual Consumer Survey The main recorded trends are:

– Positive consumer opinion (57%) on the handling of the pandemic by SM
– The distribution of consumer spending on SM (59%) is higher than other markets (41%)
– Consumers think they will pay a little more to buy fewer things
– There is a consolidation of the mobile consumer with 46% of them stating that they do not have a main chain or have one main and more complementary
– The main product selection factor right now is money
– In terms of dietary trends we have the emergence of flexiterians (26%) while 68% follow a complete diet
– There is a money saving of 13.2% related to the offers while the sources of information remain mainly the brochures and the television
– There is a recovery in environmental awareness of consumers while they view positively the use of a recycling guarantee system