Supermarkets recorded an increase in turnover in the first 8 months of 2023while consumers are making cheaper choices such as private label products.
According to research firm Circana (formerly IRI) at eight months the value of sales in supermarkets of consumer products amounted to 5.85 billion euros compared to the corresponding period last year, increased by 9.8%, of which 4.457 billion euros concern the food category. In the same time period, the volume of sales increased by 1% compared to the same period last year.
Private label products continue their dynamic course, according to the same data.
Specifically, the share of PL in value in the eight months of January – August, including the sales of Lidl Hellas, was 26.2% from 25.5% in the corresponding period of 2022 with the growth rate being 12.9%, when the at the same time, the growth rate for branded products is 8.8%. In fact, in food, the share of private label products is slightly higher at 26.6% from 26.1% in the corresponding period of 2022. In the personal hygiene and beauty category, the share of private label products is 21.1%, while in category of household goods reaches 26%.
Promotional actions are also strengthened with 24.9% of the value of sales of FMCGs being done under the offer regime. According to Circana’s data, promotions on all foods increased by 24.6%, on personal hygiene and beauty products by 28.2% and on detergents/cleaners by 25.4%.
In relation to the three major categories of fast-moving consumer goods, Circana’s data shows that in packaged food sales value in January increased by 5.7%, in personal hygiene and beauty products by 12.3% and in detergents/cleaners by 11.9% . However, sales volume in packaged foods is down 2.9%, in personal care and beauty products up 1.2% and in detergents/cleaners down 2.3%.
The 11 categories with the biggest increases in sales
Table of Contents
- 1 Here are some People Also Ask (PAA) questions related to the title “Supermarkets See Uptick in Turnover as Consumers Opt for Cost-Friendly Options”:
- 2 Here are some People Also Ask (PAA) questions related to the title **”Supermarkets See Uptick in Turnover as Consumers Opt for Cost-Friendly Options”**:
Table of Contents
Regarding the 11 main product categories, an increase in sales volume was recorded in six, namely non-alcoholic beverages (3.8%), alcoholic beverages (3.1%), personal care and beauty products (0, 2%), personal hygiene products (1.2%), snacks (4.7%) and dairy products (0.9%). On the contrary, a decrease in sales volume was noted in packaged foods (0.8%), frozen foods (2.5%), cooking materials (3.3%), detergents and cleaners (1.9%) and other household items (0.2%)
Octa-month data also show that consumers trust very small stores (up to 400 sq.m.). These stores recorded an increase in turnover (15.6%), while their total share in the turnover of supermarkets is 11.6%. In supermarkets (over 2,500 sq.m.) a turnover increase of 14.1% was recorded with a share of 11.4%, while in medium-sized stores (400 to 1,000 sq.m.) a turnover increase of 10.3% with their share in total sales to form 33.6%. Finally, a 7% increase was recorded in large stores (1,000 to 2,500 sq.m.), in which 43.5% of the total turnover took place.
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Supermarkets See Uptick in Turnover as Consumers Opt for Cost-Friendly Options
The first eight months of 2023 have brought a welcome surge in sales for supermarkets, with the value of sales reaching 5.85 billion euros, a 9.8% increase from the same period last year [[1]]. This upswing can be attributed to consumers making more budget-conscious choices, such as opting for private label products.
Private Label Products Continue to Gain Popularity
Research firm Circana (formerly IRI) reports that private label products have seen a significant boost, with their share of sales in value increasing to 26.2% from 25.5% in the same period in 2022 [[1]]. In the food category, private label products now account for 26.6% of sales, up from 26.1% last year. This growth is similarly reflected in the personal hygiene and beauty category, where private label products now hold a 21.1% share, and in household goods, where they account for 26% of sales.
Promotional Actions on the Rise
Promotional activities are also on the upswing, with 24.9% of fast-moving consumer goods (FMCGs) being sold under promotional regimes [[1]]. According to Circana’s data, promotions on food items have increased by 24.6%, while those on personal hygiene and beauty products have jumped by 28.2%, and on detergents/cleaners by 25.4%.
Sales Performance Across Categories
In the three main categories of fast-moving consumer goods, packaged food sales value increased by 5.7%, personal hygiene and beauty products saw a 12.3% rise, and detergents/cleaners jumped by 11.9% [[1]]. However, sales volume in packaged foods has decreased by 2.9%, while personal care and beauty products saw a modest 1.2% increase, and detergents/cleaners experienced a 2.3% decline.
Top Performing Categories
The 11 main product categories saw an increase in sales volume in six areas: non-alcoholic beverages (3.8%), alcoholic beverages (3.1%), personal care and beauty products (0.2%), personal hygiene products (1.2%), snacks (4.7%), and dairy products (0.9%) [[1]]. Conversely, a decrease in sales volume was noted in packaged foods (0.8%), frozen foods (2.5%), cooking materials (3.3%), detergents and cleaners (1.9%), and other household items (0.2%).
Global Supermarket Trends
This trend is not unique to one geographic region. In Italy, for instance, supermarket sales reached over 55.8 billion euros in 2022, a 3% increase from the previous year [[2]]. Furthermore, online grocery sales have seen a significant surge globally, with a 10% year-over-year growth in July 2024 in the United States [[3]]. According to McKinsey’s “The State of Grocery Retail Europe 2024” report, the European grocery industry faced a challenging year in 2023, but supermarkets adapted by focusing on private label products and promotions [[4]].
supermarkets have seen a welcome increase in turnover in the first eight months of 2023, driven by consumers’ preference for private label products and promotional activities. This trend is not isolated to one region, with supermarkets globally adapting to changing consumer habits and market conditions.
References:
Supermarkets See Uptick in Turnover as Consumers Opt for Cost-Friendly Options
The first eight months of 2023 have seen a significant increase in turnover for supermarkets, with consumers increasingly opting for cost-friendly options such as private label products. According to research firm Circana (formerly IRI), the value of sales in supermarkets of consumer products amounted to 5.85 billion euros, representing a 9.8% increase compared to the corresponding period last year. Of this, 4.457 billion euros concern the food category.
Private Label Products on the Rise
Private label products continue to gain traction, with their share in value increasing to 26.2% from 25.5% in the corresponding period of 2022. The growth rate for private label products stands at 12.9%, outpacing the 8.8% growth rate for branded products. In the food category, private label products account for 26.6% of sales, up from 26.1% in the previous year. Similarly, in the personal hygiene and beauty category, private label products make up 21.1% of sales, while in the household goods category, they account for 26%.
Promotional Actions on the Rise
Promotional actions are also on the rise, with 24.9% of the value of sales of fast-moving consumer goods (FMCGs) being done under the offer regime. According to Circana’s data, promotions on all foods increased by 24.6%, on personal hygiene and beauty products by 28.2%, and on detergents/cleaners by 25.4%.
Category-wise Performance
In terms of category-wise performance, six categories saw an increase in sales volume, including non-alcoholic beverages (3.8%), alcoholic beverages (3.1%), personal care and beauty products (0.2%), personal hygiene products (1.2%), snacks (4.7%), and dairy products (0.9%). On the other hand, sales volume declined in packaged foods (0.8%), frozen foods (2.5%), cooking materials (3.3%), detergents and cleaners (1.9%), and other household items (0.2%).
Store Size Matters
Interestingly, the data also shows that consumers are trusting very small stores (up to 400 sq.m.) more, with these stores recording a 15.6% increase in turnover. Their total share in the turnover of supermarkets is 11.6%. In contrast, supermarkets (over 2,500 sq.m.) saw a 14.1% increase in turnover, with a share of 11.4%, while medium-sized stores (400 to 1,000 sq.m.) recorded a 10.3% increase in turnover.
Global Supermarket Industry Trends
Globally, the supermarket industry is also seeing an uptick in turnover. According to a report by Statista, the number of supermarkets and grocery stores in operation across Australia reached 9,470 at the end of the financial year 2023, with around 4,395 of these stores having a turnover of over AUD 2 million [[1]]. Meanwhile, in the first half of 2024, the turnover of organized food retailing in Greece increased by 3.4% compared to the same period last year [[2]].
The efficiency of the grocery stores industry has also improved, with the receivable turnover ratio increasing to 71.21 in the second quarter of 2024, above the industry average [[3]].
Conclusion
the supermarket industry is witnessing a significant increase in turnover, driven primarily by consumers’ preference for cost-friendly options such as private label products. The data also highlights the importance of promotional actions and store size in driving sales. As the industry continues to evolve, it will be interesting to see how supermarkets adapt to changing consumer preferences and behaviors.
References
[[1]]https://www.statista.com/statistics/1469608/australia-number-of-supermarkets-and-grocery-stores-in-operation-by-turnover/
[[2]]https://www.ekathimerini.com/economy/1244405/increase-in-supermarket-turnover-in-january-june/
[[3]]https://csimarket.com/Industry/industry_Efficiency.php?ind=130
