The price hikes are holding down turnover in supermarkets

By Giorgos Lampiris

Supermarkets keep their turnover in the first five months of 2022, despite the wider inflationary environment and product price increases, but also in most categories of inelastic expenses that weigh on the family budget, according to the data of the measurement company IRI.

As can be seen from the relevant data, the turnover of the supermarkets is maintained at high levels compared to last year, due to the price increases that have been carried out in the basic consumer goods that the chains have in their stores.

Thus, sales in value during this year’s five months are down by just 0.7%, a percentage that is however formed in this way due to the increase in prices which in turn boost the total turnover of fast-moving goods in supermarkets . As the general manager of IRI Hellas, Takis Boretos, tells Capital.gr, despite the price increases, the consumer continues to spend money in supermarkets. The weighted average price increase in all categories of goods according to IRI in the five months of the year, amounts to 2.6% compared to the corresponding time period of 2021. The total sales value at the five-month level was 3.33 billion euros in the five months, from 3.34 million euros which was formed respectively in the five months of 2021.

Sales volume down 3.1% in the five months

At the same time, supermarkets saw a decrease of 3.1% in units of sales in terms of essential products in this year’s five months January – May and compared to the corresponding five months last year. This picture is clearly more representative of the real evolution of product sales, as it shows a contraction in consumer traffic.

May as an individual month recorded an increase of approximately 5% in units of products sold and 9.8% in turnover in FMCG, due to this year’s fifth month having one more day than last year, as well as of what we mentioned above, that is, despite the price increases, people continue to buy from supermarkets. However, we will remind you that it was preceded by a strongly negative April, where the drop in sales volume reached 10% and in sales value 6.5%.

Value sales by product category

If one examines individual categories of consumer goods available on supermarket shelves, in the five months of 2022 packaged foods increased their sales by value by 3.2%, snacks by 1.2%, while dairy as a whole lost 2 ,1% of their sales and frozen food 2.2%.

Sales by value (Five months 2022 – Five months 2021)

Packaged food: 3.2%

Snacks: 1.2%

Dairy: -2.1%

Frozen food: -2.2%

Cooking supplements: 4.8%

Non-alcoholic beverages: -0.1%

Alcohols: -12.2%

Personal care products: -4.4%

Personal hygiene products: 2.8%

Household cleaners: -3.2%

Other household products: -5.8%

Dips in many categories of fast-moving goods in terms of their unit sales

However, it is more interesting to see the decline recorded in the above categories of goods in terms of quantities, because as we mentioned above, the price increases are the ones that keep their turnover at the levels we saw previously, while the sales in pieces are representative of the picture of the market. Thus, if we look at the quantities sold in the five months by category, dairy lost 6.8% of its sales and frozen 6.1%, while cooking supplements 3.4% and spirits 13.5% .

Sales in pieces (Comparison of five months 2022-five months 2021)

Packaged food: 1.5%

Snacks: -0.7%

Dairy: -6.8%

Frozen food: -6.1%

Cooking supplements: -3.4%

Non-alcoholic beverages: -1.5%

Alcohols: -13.5%

Personal care products: -7.2%

Personal hygiene products: -5.1%

Household cleaners: -8.1%

Other household products: -8.3%