In this context, the supermarkets have proposed, according to information from “ET”, the reinstatement of the permanent reduction by at least 5% and for a period of at least six months, with their corresponding promotion, as an incentive to join the measure the supply companies. On the other hand, due to accuracy, many households have turned to private label products, which sell up to 250% cheaper than branded products, a fact that has also contributed to their participation in the “household basket”. According to Circana research, in the first five months of the year the sales of private label products at 1.26 billion euros and their share of total sales reached almost 27%, exerting suffocating pressure on branded products, with industries , seeing their share gnawed away, are forced to adjust their pricing policy, proceeding with large offers. After all, private label products are still “running” at a rate of 4.8%, when branded products are only at 1.9%.
When it comes to the categories that consumers choose to purchase private label, it is food and home care, followed by health and beauty products. However, despite the rise recorded by private label products in the domestic market, their share is significantly lower compared to other European countries, such as Germany, where the corresponding percentage reaches 37%, the Netherlands with 34%, France with 33 % etc.
Research carried out by “ET” taking prices of key branded items, both branded and PL, from a large private label supermarket chain, we find that a basket of 15 name brand products is 105.5% more expensive than a basket containing private label items. In other words, consumers are asked to pay 76.89 euros for 15 branded products and only 37.42 euros for the exact same “non-branded” items.
Comparing the prices of branded and PL products, the biggest price difference (+250%) is recorded in shower gels, with the branded ones being sold for 7.35 euros and the no name only 2.10 euros (for 1,000 ml). They are followed by bleach with 217%, sunflower oil with 193% and the price of a liter at 4.83 and 1.65 euros respectively, and toilet paper (8 rolls) with 175.1%.
The branded rice for pilaf is sold 157.9% more expensive at 2.45 euros compared to 0.95 euros for the private label, with the scissors opening at 157.9%, followed by beans (500 grams), flour for all uses and lentils, with their price difference being 152%, 150% and 132% respectively.
Next are laundry detergents (45 scoops), with the difference reaching 158.3% and the prices being at 14.08 and 5.45 euros respectively, while branded beans are 152% more expensive than those bearing the brand of the chain.
The price of pasta is 90% higher, with branded ones being sold at 1.18 euros and private label ones at 0.62 euros. In addition, strained yogurt of a well-known brand (1 kg) costs 4.7 euros and PL just 2.5 euros, with the price difference reaching 88%, while Greek coffee also shows a corresponding difference.
They are followed by laundry detergent, with the private label segment forming at 74.3% and their price at 9.5 and 5.45 euros respectively, and fresh milk at 61.7%.
By contrast, in one key inflation-fueling commodity, none other than olive oil, the various price of branded and private label has closed significantly, to 12.6% from 41.1% about two years ago. months. In particular, the price of a well-known brand of extra virgin olive oil remains stable at 15.38 euros and that of “no name” increases from 10.9 to 13.65 euros per liter.
On the table are new measures against punctuality
In the meantime, the Ministry of Development is looking for new interventions against punctuality. In this context, 100 basic food products are put under the “microscope” in order to reduce their prices. Given that the supermarket chains already send to the competent services the invoices they buy the goods from the suppliers, as well as the prices they sell them, DIMEA will intensify the checks in order to avoid the phenomenon of profiteering. Foods such as milk, yogurt, cheese, olive oil, pasta, rice, bread, meat, fruit and vegetables will be on the radar of regulators, checking wholesale and retail prices and by extension businesses’ profit margins.
Moreover, in a recent meeting of the responsible minister, Takis Theodorikakos, with market executives, he asked both industries and supermarkets to limit their average profit and, by extension, prices. The representatives of the organized food retail trade say that they cannot reduce it, as the sector already works with a margin of 1.4%, however some supply companies work with a profit margin of even 10%-15% on some products.
On the other hand, due to the uncertainty prevailing in the market, there is a reluctance on the part of both suppliers and supermarkets to reduce prices permanently. That is why the Supermarket Association has proposed to the ministry the reactivation of the measure of the permanent price reduction of at least 5% and for a period of at least five months, with the corresponding information to the public. “We think the measure that ended on June 30 was a good idea and something similar should be built on top of it. By reducing suppliers by 5% or 7% or 10% for six months voluntarily with special marking, the supermarkets could give a better position on the shelf and the ministry in turn inform the consumer public about the companies and the products who participate in the initiative as a reward. It’s a measure to really lower prices without interventionist measures”, a representative of a large supermarket chain underlines to “ET”.
PRICES OF SUPERMARKET PRODUCTS
| PRODUCTS | LAST NAME | PRIVATE LABEL | BRAND-NAME – PRIVATE LABEL PRICE DIFFERENCE |
| ALL-PURPOSE FLOUR (1 KG) | 2 | 0,70 | +150% |
| HIGH PASTEURIZED FRESH MILK (1 LITRE) | 1,94 | 1,20 | +61,7% |
| STRAINED YOGURT (1 KG) | 4,70 | 2,50 | +88% |
| GREEK COFFEE 194 G. | 3,94 | 2,10 | +87,6% |
| IMPORT THIN LENSES 500 GR. | 2,18 | 0,94 | +131,9% |
| MEDIUM BEANS 500 GRAMS. | 2,52 | 1 | +152% |
| EXTRA VIRGIN OLIVE OIL (1 LITER) | 15,38 | 13,65
(10,90) |
+12,6%
(+41,1%) |
| SUNFLOWER OIL (1 LITER) | 4,83 | 1,65
(1,70) |
+192,7%
(+184,1%) |
| SPAGHETTI No. 6 500 GRAMS. | 1,18 | 0,62 | +90,3% |
| RICE FOR PILAFI 500 GRAMS. | 2,45 | 0,95 | +157,9% |
| CHLORINE (1,250 ML) | 2,98 | 0,94 | +217% |
| LAUNDRY DETERGENT IN POWDER (45 WASHS) | 9,5 | 5,45 | +74,3% |
| FOAM BATH (1 LITER) | 7,35 | 2,10 | +250% |
| SANITARY PAPERS (8 ROLLS) | 9,96 | 3,62 | +175,1% |
| TOTAL | 76,89
(75,43) |
37,42
(35,53) |
+105,5%
(+112,3%) |
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