Inflation opens a promotion war between supermarkets and more white label brands are purchased than ever

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Inflation opens a promotion war between supermarkets and more white label brands are purchased than ever

Inflation opens a promotion war between supermarkets and more white label brands are purchased than ever - 1

Inflation opens a promotion war between supermarkets and more white label brands are purchased than ever - 3

The cost of food is causing consumers to change the way they shop. People go less to specialized and traditional stores and more to supermarket chains. And more white label brands are purchased than ever.

The market share of the distribution brand is 43.5%, its historical maximum according to data published by the consulting firm Kantar, which corresponds to mid-2023. A year ago, they were 41.3% of what was I bought at the supermarket, leaving fresh foods aside; and in 2021 it remained at 38.3%.

The distribution brand “is growing 2 points (percentage) per year, while in the previous 10 years it was one point,” said Bernardo Rodilla, Retail Client Director of Kantar’s Worldpanel division, in a press conference. A white label that is growing despite the fact that it is the most expensive, with peaks at the beginning of the year that exceeded 16%. Therefore, “as price growth levels out, it will slow down,” he anticipates.

In parallel, the promotions return. Some offers that a few months ago were scarce and that are going to increase. For this reason, the consulting firm talks about a “war” on discounts for the coming months. “From my point of view it is going to happen,” Rodilla pointed out, with the Christmas campaign on the horizon, which is the one that concentrates the most spending on food. “The consumer is demanding them.” “Offers are decisive in a quarter of uncertainty, of a certain pessimism.” Also, “to compensate for the rise in prices and so that consumption does not slow down.” The promotional pressure is going to intensify,” he concluded.

According to Kantar, almost 35% of all shopping baskets contain products as promotions, three percentage points more than a year ago, and 60% of the customers analyzed affirm that they opt for brands that they do not usually buy if they arrive on the shelf. see that they are on sale. They are almost 8 points more than two years ago.

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Fred Richardson

a computer enthusiast with an insatiable appetite for problem-solving. After graduating with a degree in Computer Science in 2010, he embarked on a lifelong journey of exploring the intricacies of technology. For the past 25 years, Fred has dedicated himself to building custom PCs, mastering the art of hardware and software integration. With a deep-rooted belief in the power of coding, he has sought to unravel the complexities of life's challenges through lines of programming. From the early days of DOS 3.3 to the present, Fred has been a steadfast support for users, utilizing his knowledge to assist and guide others in navigating the ever-changing world of technology.