Research from SymphonyIRI’s Topline Trends report Is Economic Uncertainty Affecting FMCG Sales and the latest household category Pulse Report show that while food continues to support volume sales in the grocery sector, non-food categories such as household products are showing a decline in volume sales as shoppers feel the pinch and not only trade down but reduce the frequency of purchase.
For the period up to 1 July 2012, the sales value of household goods across Europe rose 1.9%. In France, the value of household grew by 4.5%, the highest in Europe, compared to a total country FMCG sales growth of 4.5% and an average of 1.9% across Europe.
However, the growth in value was price-driven in household goods. In the year ended Q1 2012, the cost of household items rose on average by 3.3% across Europe, well ahead of the non-food average of 2%. As a result, despite value sales rising, volume sales fell by 1.3% on average across Europe (for the year to July 2012).
Country by country trends vary. In Greece, the decline in volume sales was steepest at 3.2%. In the Netherlands, it was 1%.
Only Spain and Germany saw volume sales growth of 0.8% and 1.4% respectively; the former reflecting price increases of under 1% on average, the latter more likely the relative health of the economy.
As the pressure remains on shoppers and their budgets, they are prioritising food above other everyday consumables. Consumers are using household products less – trading down to cheaper own-label brands, purchasing more multi-purpose products and switching retail channels to save money on their entire grocery shop.
Shoppers are also making products last longer by diluting products with water and following other tricks. In many countries, particularly the UK and Germany, discounters and even pound-style shops have begun to sell household items at low prices, adding to the pressure on national brands.
Source: SymphonyIRI Group
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