French consumers reduced their volume spend on fresh products by 7.5% and on organic items by 10% in the four weeks to 12 June, new data from Kantar has shown, as the inflationary situation begins to hit home for households.
French households increased their spend by 1.9% in the period, and their purchase frequency by 1.2%, the data showed.
Consumer perception of price increases among shoppers is increasing, rising by five points between May and June – in addition, some 82% of so-called 'vulnerable' households believe that prices have increased, a 35-percentage-point increase on this point a year ago.
Inflation Having A 'Clear Impact'
"Inflation is now having a very clear impact on new consumer choices," commented Gaëlle Le Floch, marketing director, Kantar Worldpanel. "The fall remains very significant in the traditional fresh market, at -7.5% by volume, and consumers are increasingly choosing to buy cheaper, either by changing their store, changing their choice of product, or turning to promotions."
Value-based private-label ranges are seeing a rise in sales, she added, reaching 10% of the total market, compared to 9% in the same period last year, and 8.2% in 2018.
Inflation is also prompting shoppers to go to stores more often, making smaller shops, as a means to better control their spending, Kantar said, a trend that is particularly visible among lower-income households.
'Wider 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, 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, the discounters have seen their market share rise by 0.3 percentage points, the proximity channel has risen by 0.1 percentage point, supermarkets are also up 0.1 percentage points, and hypermarkets are down 0.1 percentage points. Online has shown a decline of 0.4 percentage points.
The data for the study was sourced from a sample of 20,000 Worldpanel panellist households across France.