French consumers reduced their volume spending on fresh produce by 7.5% and organic items by 10% in the four weeks to June 12 Kantar demonstrated this, as the inflationary situation begins to affect households.
French households increased their spending by 1.9% during the period and their purchase frequency by 1.2%, the data showed.
Consumers’ perception of price rises among shoppers is rising, rising by five points between May and June – in addition, some 82% of so-called “vulnerable” households believe prices have risen, an increase of 35 percentage points over this point a year ago.
Inflation has a ‘clear impact’
“Inflation now has a very clear impact on new consumer choices,” comments Gaëlle Le Floch, Marketing Director of Kantar Worldpanel. “The drop remains very significant on the traditional fresh market, at -7.5% in volume, and consumers are increasingly choosing to buy cheaper, either by changing stores or by changing their choice of product, or by resorting to promotions.
Value-based private label ranges are seeing an increase in sales, she added, reaching 10% of the total market, up from 9% in the same period last year and 8.2% in 2018.
Inflation is also prompting shoppers to visit stores more often, by setting up smaller stores, to better control their spending, Kantar said, a trend particularly noticeable among lower-income households.
Read more: A study by E.Leclerc highlights the impact of rising food prices in France
A greater variety of stores
French consumers are now visiting a wider variety of stores than they were in the pre-pandemic years of 2018 and 2019, as part of their “search for bargains, the quest for the best price and the need not to spend more than a certain amount”. when shopping.
In addition, some 28.4% of “vulnerable” households believe that their financial situation will deteriorate over the next 12 months.
In this context, discounters saw their market share increase by 0.3 point, the convenience channel increased by 0.1 point, supermarkets also increased by 0.1 point and hypermarkets fell by 0.1 point. Online showed a decline of 0.4 percentage points.
The data for the study comes from a sample of 20,000 Worldpanel panelist households across France.
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