The rise in prices in 2022 proved one of the typical axioms in the distribution industry; Even if the prices go up, you always have to eat. Consulting firm Kantar published a study Tuesday that found that consumption is now more pronounced than the rise in prices as the health crisis is over. The idea is that the Spaniards continue to consume in the supermarket despite the rising prices, only that the large supermarket chains gain an advantage to increase the sales of their own products (private label) compared to the leading brands: the brand of distribution, driven not by consumer demand, but by the increase in retailers’ offers”, confirms Kantar experts. In other words, “in the face of rising prices, Spaniards choose not to buy less food and drink but instead to reduce their spending on other goods and services first,” concludes Kantar.
The strategy of the supermarket chains was clear to “compensate for the increase in prices with the increase in the quota in the shopping cart of private label or low-priced products” to control the perception of the basket price by the consumers. “.
Jorge Folch, general manager of Kantar’s Worldpanel division, stated that with the reversal of the pandemic, the mass consumption sector is expected to normalize, but stated that the beginning of the year is marked by February. a resurgence of inflation, the war in Ukraine, the transport crisis, or the recovery abroad (OOH). The most perceived thing in this context is the loss of confidence of consumers who tend to cut back on their luxury spending.
Source: Informacion
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