The price rise of 2022 underscored a common truth in distribution: even with higher costs, consumer need remains. A study from consulting firm Kantar published on Tuesday shows that purchasing activity has remained robust, outpacing the pace of price increases as health concerns ease. The finding indicates that Spaniards keep shopping in supermarkets despite rising prices, while large chains gain leverage by expanding private-label offerings relative to leading brands. This shift suggests the store-brand line, driven more by retailers’ promotions than by brand appeal, is quietly nudging the overall basket composition. In short, when prices climb, Spaniards don’t buy less food and drink; they prioritize trimming expenditures on other goods and services first, according to Kantar.
The prevailing supermarket strategy was to offset higher costs by raising the share of private-label or low-priced items in the shopping cart, thereby shaping how consumers perceive the overall basket price.
Jorge Folch, head of Kantar Worldpanel, noted that as the pandemic recedes, the mass-consumption sector tends toward normalization. Yet the early part of the year is colored by renewed inflation pressures, the war in Ukraine, ongoing transport challenges, and a gradual recovery abroad. The dominant sentiment among consumers is a loss of confidence, which nudges households to curb discretionary and luxury spending while maintaining essential purchases.