A return to pre-pandemic customs. In recent years, inflation has changed shopping habits. On the one hand, increasing the number of visits to the supermarket, hypermarket or local store, with smaller baskets than before to try to spend as little as possible. On the other hand, because consumers have scrutinized the offers to go to this or that establishment based on prices and discounts.
However, the moderation of inflation in recent months has begun to change these habits. “We are in a moment of greater stability. In these first eight months, we have reversed the trend of going more often,” explained Bernardo Rodilla, Client Manager of the consultancy Kantar, on Tuesday, explaining to the media the consumer trends so far in 2024. “Now we are going to fewer .stores,” which means that “50% of the chains are losing customers compared to 2023.” This does not mean that people go to the supermarket less, but rather that everything is concentrated in a single chain and it is no longer so much about finding the best deal.
This trend also means that volume purchases have decreased slightly, by 0.7% – which also reflects the fact that people are eating and dining out more – but the wallet remains tight, as spending on food, pharmacy and cleaning is almost 2% higher than in the same period of summer 2023. Recall that the latest inflation data published by the National Institute of Statistics puts the increase in prices at 2.2%.
The fact that we are going to the supermarket or grocery store less often means that chains and companies are “fighting for loyalty” with customers, according to the Kantar boss. Half of consumers do not have a clear preference when turning to one retail chain or another; but the remaining 50% are loyal and always frequent the same establishment. “As for 2019, we are in a more complex situation, because there are more options. Stores continue to open, there are almost 1,000 more establishments than before the pandemic.
White label slows its growth
The Spanish have long preferred to go to the supermarket, especially the neighborhood one, rather than to other types of food stores. In fact, as we said in this topic, medium-sized stores account for half of all purchases, largely due to the growth of Mercadona in recent years and because the private label has become a hook to attract consumers, given that it is generally cheaper.
And there are also changes in trend. “The distributor brand is slowing down, it is no longer growing by two percentage points, but by one,” explains Bernardo Rodilla. “But if we see how much it weighs, it is only in the chains more focused on this type of brand that it is growing.” That is to say, the white label is progressing above all in companies that have made it a flagship, such as Mercadona, Lidl or Aldi.
In total, 44.4% of everything purchased in mass retail is white label, compared to 43.1% a year ago and 41% two years ago, according to data published by Kantar.
That’s the average, because in chains where the commitment to own brands is stronger, these products represent more than 76% of everything they sell, although the consultancy does not break down the exact data by company.
On the other hand, if we consider only hypermarket chains – stores of around 5,000 square metres – private labels represent on average 27% of what they sell. The latter is a percentage similar to what happens in supermarkets where the commercial proposition is not as linked to the products of their own brands, such as those of regional supermarkets (where Gadis, Consum, BM or those of the IFA group would be found).
Mercadona continues to grow
With these changes in habits, Kantar’s data indicates that Mercadona continues to grow, by 0.9% so far this year. Its market share is around 27%, which means that more than one in four supermarket purchases is made in an establishment of the Valencian brand. However, this analysis firm also notes that the company chaired by Juan Roig is showing signs that it is no longer advancing as quickly as before and that it is doing so mainly in geographical areas where it is less present, such as the north of Spain.
Behind them, the chains that are experiencing the most growth are those of the IFA group, where we find Ahorramás, Condis or Alimerka; followed by Carrefour, Lidl or Aldi, as summarized in the following graph.
Regarding the French brand, Kantar points out that it has strengthened itself in fresh products but not in other categories and that its market share in white label, in which it has acknowledged seeking to develop, exceeds 35%. At the same time, the two large German companies, Aldi and Lidl, are strengthening their market position thanks to the growth of their commercial network and thanks to the acquisition of more recurring and loyal customers.
And regarding the super regional stores, Kantar justifies that they have capitalized better on the transfer of customers from neighborhood stores. Meanwhile, Dia is losing market share (half a percentage point) compared to a year ago, but is reversing this trend after transforming its commercial network and is growing in what it calls the “routine basket”, that is, the most common purchases; and among older households.
