three quarters distributors and major Spanish manufacturers I believe in the second half of the year promotional activity as a strategy to increase sales volumes. This is reflected in a barometer performed by Association of manufacturers and distributors AECOCBringing together 33,000 companies in the sector, including the majority of supermarket chains and the main food producers in the country. This is where the importance of data and intent read between the lines stems from: Promotions and offers will continue to be the norm until December.
The goal is to reverse the decline, or at least the stagnation in sales. latest data idescat By June it shows: food sales in supermarkets It fell 3 percent in Catalonia and around 1 percent in Spain. And the latest version of a periodic analysis Weighbridge In June, 37% of consumers say they plan to reduce. levels Consumption in the coming months This rate is expected to ease the levels at the beginning of the year, but is still well above the year-ago level. food inflation started to dissolve. Best of all, prices are still 10.8% more expensive than a year ago.
In this way, 38.9% of the distribution companies that AECOC advises make predictions. Up to 5% decrease in sales volumes27.8% of companies plan to keep them as they are. Only a third of the sample is waiting to grow. On the manufacturers’ side, the percentage of companies believing that there will be a decrease in volume scales reaches up to 56%.
Inflation and its impact
“HE AECOC Commercial Strategy and Marketing CommitteeConsisting of the leading producers and distributors of mass consumption, the association defines the decline in sales volumes as the main concern of companies in the sector, summarizes the association as follows: “In its analysis of the situation in the sector, the companies in the sector do not foresee that the dynamics will change in the second half of 2023; inflation context and her impact on consumers“, To explain.
Accordingly, 70% of companies believe that buyers will be more affected by this. decline in purchasing power will shape their purchasing behavior in the coming months.
For reference, prices increased by 2.3 percent in July compared to last year, then already increased by 10.8 percent. Inside food industry Specifically, they are still 10% above their July 2022 position. estimated this is the government reduction VAT some food products Although voices in the industry (such as Ignacio González, former president of AECOC) do not believe that a return to normal situation can be achieved by 2024, it is slowly taking effect.