Switch to cheaper products
Almost all consumers have turned into avid bargain hunters, whether the products are a part of the “household basket” measure or the usual promotional programs carried out by suppliers in cooperation with retailers, in an effort to save money amid the inflationary crisis, a new analysis has confirmed.
According to a survey of consumer trends carried out by the Athens University of Economics and Business, consumers are also taking other measures, from postponing purchases of other items – such as clothes and home appliances, with an obvious impact on the rest of retail trade other than supermarkets – to reducing electricity consumption, with the incentive in this case not being to protect the planet, but to avoid inflated bills.
The survey, presented on Thursday by Professor Giorgos Doukidis, showed that the main practice of consumers (employed by 84% of them) is to chase offers and discounts. It is worth noting that according to data presented by Vaios Dimoragas, managing director of NielsenIQ, 29% of consumers in Greece are switching supermarkets depending on the offers they have. This is the highest percentage ever recorded by the company.
The importance consumers attribute to offers is also proven by the fact that, as pointed out by Costas Antimisaris, general business manager of the METRO (My Market) group, the products that were included in the household basket recorded a turnover increase of 60-70% compared to the period they were not in the basket, a phenomenon that is generally observed when a product is available on sale.
Another “aggressive” consumer practice is the purchase of cheaper products, such as private label products, the share of which – according to IRI data – is 16.1%, but rising to 23.6% when including Lidl, according to the NielsenIQ data.
Many are not just buying cheaper products, as 67% said they now buy fewer. In the first 10 months of 2022, the decrease in sales volume at supermarkets has reached 1.3% year-on-year.
Despite the above practices adopted by households, the disposable income is often not sufficient to cover expenses. “The Greek family spends 25% more than their income,” Doukidis argued.
