Sales growth in the Italian retail channel (supermarkets, hypermarkets, discounters and drugstores) has slowed down to 0.3% in the 12 months to June.
This compares to a 2.8% growth in value and 2.2% in volume of retail sales during the same period 2015, according to IRI data reported by daily “Il Sole 24 Ore”.
The slowdown came despite intense promotional activity affecting 28% of products, while prices remained flat.
IRI claims that the first six months of 2016 were impacted by geopolitical tension and the financial markets, as well as uncertainty generated by Brexit.
Consumption of packaged goods slowed down, while the food sector continues to show moderate volume growth, thanks to the contribution of fresh products. Beverage sales have fallen for three months due to the milder temperatures compared to 2015.
Sales of personal care products have been shrinking for six months, as well as home care products, whose average prices have fallen, although volumes have grown from last year.
IRI forecasts a long period of deflation, favouring the evolution of shopping toward higher-value products. It also believes that the stagnation of volumes sold, along with the falling prices, will inevitably hurt the turnover of retailers.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
