Prices in hypermarkets and supermarkets continue to rise. And that has consequences for what the French buy when they go shopping. The IRI company, which follows these developments every week, makes an observation that, in itself, is not surprising, but which risks weighing heavily on the activity of the affected sectors. Sales of food that embody luxury, of those products that are reserved for the celebration of festive moments, are doing poorly.
We can take the example of foie gras. Iri notes that in mid-October the turnover generated by the sale of lobules in the fresh section is almost half (-42.8%) lower than last year at the same time of year. A fall that the health problems experienced by some breeders only partially explain. Less spectacular for canned foie gras (-19%), the decrease is, however, considerable.
Champagne sales drop 21%
The same goes for champagne. The number of bottles sold last month fell by more than 21% compared to September 2021. Turnover from the champagne department fell slightly less. But it is tied to the fact that the average price of bottles has increased significantly.
It’s also unclear whether this price increase has amplified the drop in sales. Therefore, champagne producers will have to rely more than ever on export sales, which, admittedly, are on the rise.
Sales of entry-level brands increase month over month
Along with those products whose sales have dropped, there are those that are selling better. What is most striking is the growing success of “first price” brands. In volume, sales have increased since the beginning of the year by 7.2%, again according to Iri. And in September the 10% mark was exceeded, still in volume.
Forced to sharply revise their prices upwards due to the rise in raw material and energy prices, these brands have not lost their first argument: they remain the most affordable in their category. And as the proportion of consumers who systematically compare prices has increased, they end up in their shopping cart more often.
The French fever for sandwiches
Iri also notices an increase in sales in the “sandwich” department. Since the beginning of the year they have increased by 15.5% compared to the first nine months of 2021, generating 21.3% more turnover.
The explanation is twofold. Last year, more French people telecommuted to be able to prepare a real lunch. And furthermore, inflation is leading more and more employees to stop eating lunch at the restaurant during the week, preferring to save money by getting by on a sandwich.
The special case of frozen pizzas
Another product saw its sales fall but, there, without relation to inflation. This is frozen pizza. The fall began six months ago, when the case of Buitoni pizzas contaminated with E-coli bacteria and suspected of having caused the death of two children became known. These revelations destroyed the confidence of some consumers. Iri points out that since the beginning of the year, shelf sales are down more than 25% compared to the same period in 2021.
Source: BFM TV
