It’s a reality, French consumers buy less, and buy cheaper. In the end, they leave with less and less filled shopping carts.
Even ‘affluent households’ are reducing their food purchases
In September, food inflation was close to the 10% threshold (+9.9% noted INSEE). Labels that have become accustomed to waltzing with, for example, +29% increase for frozen meat, +22% for meat in the butcher’s department, +20% for pasta, +16% for margarine and butter , +15% for oil and coffee according to data from the analysis firm IRI France. Even ‘affluent households’ are reducing their food purchases.
Reduction of purchases
Whereas so far consumers used to favor cheaper products, they now try to limit their purchases in order to ‘erase’ price increases. A study shows that purchases in supermarkets fell by 3.5% over one year in September 2022. The French continue to drastically reduce their purchases of ‘Traditional fresh products’ which fell by 6.4% in volume, announces a study by Kantar.
We are not yet in the deconsumption phase
Supermarkets are not the only ones affected by the drop in purchases since online sales are down 4.9%. The director of LSA magazine analyzes the situation: “We are not yet in the deconsumption phase. We will have to see this over a longer period, but there are reasons to be worried because there are French people who are really in difficulty“, he underlines. Moreover, many consumers are looking for immediate promotions in order to fill their shopping cart.
An equally complex situation for manufacturers
For manufacturers and companies, the problem is complicated to solve, the question being simple but complex: ‘how to respond to consumer concerns without increasing prices too much (and therefore pulling sales down) but also without sacrificing margins? in a generalized context of rising costs…’.