Persistent inflation, particularly in the food sector, is leading more and more French people to change their consumption habits. And in particular to reduce certain expenses. To measure this consumption, we can immerse ourselves in reading the results of a very interesting survey commissioned by LSA magazine, the “bible” of retail trade professionals.
First observation: fewer and fewer French people do not have difficulties to cover their monthly expenses. Half of them fully agree with this statement “Are my ends of the month complicated?” Before the war in Ukraine they were 37%. And if we add those who “quite agree” with this statement, three out of four French people have difficulties making ends meet.
One in two consumers prefers supermarkets with the lowest prices
Who says complicated end of the month, says more difficulties to save money. More than half (54%) of consumers surveyed say they can’t save as much anymore. However, this does not mean that they no longer write anything down in their notebooks, as the Caisse des Dépôts recently observed.
And for cause. Inflation pushes the French to reduce their spending. Starting with what they put in their shopping cart. One in two (51% compared to 39% in January 2022) says they go to cheaper supermarkets. The share of those who say they buy more private label products is almost as high (47% vs. 36%). They are also increasingly buying in smaller quantities (37% vs. 26%) and limiting their purchases (44% vs. 32%).
The cheapest brand? E.Leclerc for 36% of consumers
Regarding those who have chosen to buy in the cheapest supermarkets, in this survey we also see the effect of Michel-Edouard Leclerc’s communication strategy. In this survey, consumers were asked to name the brand they considered the cheapest. E. Leclerc is not only victorious. Cited by 36% of consumers, it dominates by far the two historical ones with great discounts, Lidl (22%) and Aldi (7%). It is this excellent price image that allows Leclerc supermarkets to gain market share quarter after quarter compared to their competitors.
That said, even if Leclerc does benefit a bit from the situation, the fact that consumers are cutting back on spending is a problem for all the big retailers. And it’s an even bigger problem for anyone selling products or services less essential than food.
More than half of the French plan to cut spending on restaurants
Because the proportion of French people who plan to reduce this type of spending is reaching worrying levels: 56% for bars and restaurants, 51% for leisure and entertainment, travel and holidays, 50% for electronics, furniture and 47% for body care. (hairdressers, beauticians, etc.). Which augurs an even more difficult end to the year 2023 for all these merchants and their suppliers. With the risk that this announced lack of consumption ends up threatening growth that is already very weak.
Source: BFM TV
