Supermarket: Turnover growth of 9.5% in 11M 2023

Inflation continues to boost supermarket turnover in the 11 months of January - November 2023 as consumers make cheaper choices and increasingly turn to private label products.

According to data from research firm Circana (formerly IRI), in the 11 months the value of sales in the consumer products market amounted to €8.188 billion compared to €7.477 billion in the same period last year, up by 9.5%, of which €6.239 billion was in the food category. In the same period of time, sales volume increased by 2.2% compared to the same period last year.

According to the same data, private label products continue their dynamic course. Specifically, the share of PL by value in the 11 months January-November, including Lidl Hellas' sales, stood at 26.3% from 25.8% in the corresponding period of 2022 with a growth rate of 11.6%, while at the same time the growth rate for branded products is 8.8%. In food, in fact, the share of private label products is slightly higher at 26.8% from 26.4% in the corresponding period of 2022. In the personal care and beauty category, the share of private label products is 20.9% while in the household goods category it reaches 25.6%.

There is also an increased intensity of offers on the shelves of supermarket chains, which is mainly found in the two major categories of consumer goods, food and home care products. In the former category the percentage of turnover derived from promotions increased to 24.8% and in the latter to 25.3%. Overall, the turnover of mail order goods sold under promotional scheme increased to 25% in January-November.

In terms of the three major categories of fast moving consumer goods, Circana's data shows that packaged food sales value increased by 9.5%, personal care and beauty products by 9.1% and detergents/cleaners by 9.7%. At the same time, the sales volume of packaged foodstuffs increased by 2.3%, personal care and beauty products by 1.7% and detergents/cleaners by 0.5%.

Regarding the 11 main product categories, in the 11 months of January-November 2023, sales volume growth was recorded in nine categories, namely packaged food (0.4%), snacks (4.7%), dairy products (2,9%), non-alcoholic beverages (4.7%), alcoholic beverages (4.8%), personal care & beauty (1.7%), personal hygiene (1.8%), detergents & household cleaners (0.2%) and other household articles (0.7%). On the contrary, a decrease in sales volume was recorded in frozen food (0.2%) and cooking materials (2%).

The champions of price increases in the 11 months are detergents and cleaners with price increases reaching 11.6%. This is followed by cooking materials with price increases of 9.4%, snacks with price increases of 8.5% and frozen food with price increases of 8.3%. The smallest price increases during the 11 months compared to the same period last year were recorded for alcoholic beverages (3.31 TP3T) .

The 11-month data also show that consumers trust very small shops (up to 400 sq m). These stores recorded an increase in turnover (14.7%) while their overall share of supermarket turnover is 11.6%. The supermarkets (over 2,500 sqm) recorded an increase in turnover of 13.5% with their share of total sales being 11.5% while the medium stores (400 to 1,000 sqm) recorded an increase in turnover of 9.8% with their share of total sales being 33.5%. Also, an increase of 7% was recorded in large stores (1,000 to 2,500 sqm), which accounted for 43.5% of total turnover.

In terms of geographical regions of the country, the highest sales growth was recorded in Crete (16.9%), followed by the Peloponnese (11.3%), Northern Greece (11.1%), Central Greece (9.1%), Thessaloniki (8.6%) and Attica (8%).