those products that profit from inflation

published Sunday 20 November 2022 at 11:43

Warm clothes, less meat and alcohol, more starches. The French are adapting to rising prices.

Since the summer of 2021, runaway inflation has hit Europe and the world.

While France is relatively spared compared to certain neighbours, the consumption habits of many French people have changed. Focus on products that are successful and those that consumers give up.

• Sweaters and duvets benefit from less heating

Between the necessary sobriety hammered by the government and the increase in energy prices, families are preparing to turn down the heat. “Despite an autumn that is not too cold for the moment, play on the sales of scarves, sweaters, fabrics that allow you to keep warm…”, observes Yohann Petiot, general manager of the Alliance du Commerce, which represents clothing professionals.

The down jacket brand Jott thus assured in a press release that its sales had increased by 30% between the end of September and the beginning of October, a figure he defines as “exceptional”. The Damart sign declared at theAFP extension to have recorded a 50% increase in sales of Thermolactyl technical underwear, “unheard of”.

• More pasta, less meat

In supermarkets the trolleys are less full according to the speakers, especially for more modest families. Many French people prefer “a familiar main course” in which meat is replaced by eggs or starchy foods, notes Lydia Rabine, an analyst at the Kantar research institute.

In the first half of 2022, the French consumed on average 1.5 kg of red meat and about one kg less poultry compared to the same time last year, according to Kantar.

Its competitor Nielsen is also experiencing a significant drop in sales of fresh products in general, especially among households. “These are the products that cost the most and the ones that increase the most,” he explains toAFP extension analyst Nicolas Léger.

On the other hand, pasta is increasingly present at the table, considered a cheap food (+1.5% in volumes sold according to Nielsen). However, this increase is concentrated on the brands of first-price distributors, according to the producer Panzani, which for its part records a small drop in volumes sold.

• Solicited distributor and discount brands

In supermarkets, “private labels”, created by brands and generally less expensive, are gaining market share. Sales of their entry-level products are “dynamic,” according to Lydia Rabine. Those of their other, more sophisticated products, are also experiencing “acceleration,” says the analyst. Same thing for “discount” brands such as Lidl or Aldi, which gained, according to Kantar, 0.5 points of market share between the beginning of September and the beginning of October, compared to the same period last year.

Outside of supermarkets, the deferral of purchases to entry-level brands “is good for Kiabi and Gémo rather than other players in the clothing sector and this also applies to Action and Gifi”, observes Emmanuel Le Roch, general delegate of the specialized trade federation Procos.

• Alcohol and beauty products set aside

Households, on the other hand, “cut back on less essential products”, notes Nicolas Léger, while Nielsen data shows a drop in purchases of alcohol and hygiene and beauty productsparticularly marked among families. He notes that families tend to “put off their alcohol purchases for sugary sodas” to continue enjoying themselves at a lower cost.

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