As shoppers pay more for Anything from coffee to ketchup, some retailers Began to cut or cover price of hundreds of Products as they are compete for customers and set themselves up to do battle in Negotiations with Major manufacturers of packaged food.
Eurostat said on On Friday that inflation in the euro area for Food, alcohol and tobacco prices increased by 6.4%. in April vs. last yearcomparison with 5% increase in March, in the name of rising cost of living in Europe extends even further expensive energy.
The head of Leclerc, the largest retailer in France by market share and on On Tuesday, it said it would identify the 120 . items consumers buy Most, including toilet paper and soap, rice pasta, creating”shield”Where will Leclerc guarantee The price of these items From May 4th through July.
The price increases were anywhere between 6% and 20%. macaroni, for For example, by 20%, as some brands have done of Michel Edouard Leclerc said coffee and chocolate in Interview with French broadcaster franceinfo.
In March, European governments, some facing This election yearspent dozens of billions of Euros to protect families from energy costs.
There is little sign They will provide the same help with Food bills, a smaller portion of Domestic spending, but politicians are concerned that household incomes are under pressure and consumer groups have warned that the poor will have to choose between heating homes And eat properly.
As almost everyone becomes more be aware of how A lot of them spendsupermarkets, which have seen steady margins, are eager to avoid Loss of customers to competition.
chief executive officer of British supermarket group Sainsbury told reporters last Shoppers of the week were “watching every penny.”
analysis of assorted basket of Created goods for Reuters by data company Nielsen shows those prices for Products including beer, bottled water and ketchup rising sharply in Many extended cases big Increases the last year.
On average, shoppers in Europe pay around €2 ($2.10) more for six Basic food products, 8%. higher from last year. Retailers charge 8.6% more for instant coffee in The four weeks until March 26, on On average, while price of baby Milk rose out more of 21%.
While Leclerc promised to freeze some prices, across Europe, retailers Widely seeking to reduce the impact of inflation on the most important items.
spokeswoman for European retail and wholesale trade EuroCommerce Association, which has more More than 95 members, including Carrefour, Lidl and Marks & Spencer, said they were all looking price caps and wounds in Some form, though it will depend on Input costs on Supplier Margins.
“Because of very competitive nature of grocery marketYou will see other supermarket chains trying to maintain prices down as much as possible,” the spokesperson said.
In the UK, prices are rising caused biggest pressure on Family income since at least the fifties as a grocer price economic inflation hit 5.2% in Four weeks until March 20 highest Level since April 2012, industry data last Show month.
In response, department stores there, including Asda and Morrisons, have cut prices of Basic items.
Although they have a pillow after closings due to people eat in home and spent more on Buying components, analysts expect full-year Margins to be flat or decline a little bit in europe retailersincluding Carrefour SA, Sainsbury’s, Colruyt and Ahold Delhaize.
They will be looking forward to getting some back of the influence of price cuts in tough negotiations with Food production companies, which usually end late last year in slash of Europe, but it took on as a supply chain problems Inflation was exacerbated by the Russian war in Ukraine has complicated the agreement.
Packaged food makers such as Mondelez and Unilever are eager to raise prices as have their margins. also shrunk while input prices rose due to of record commodity costs.
Unilever, which makes Knorr Chicken Stock and Hellmann’s Mayonnaise, said last Thursday raised prices in Europe 5.4%, quarterly core sales growth for The region by 0.7%.
However, I expected that a file first-half The margin will be between 16%-17%, down from 18.8% last year.
“If you compare it with What’s happening to people’s energy bills, we feel totally responsible, CEO Alan Job told reporters that the company has warned of in addition to price He said that unless it is charged moreThe “full Effect” of higher Input costs will be 900 basis points hit to her full-year margins.
Dirk van de Putt, Chief Executive Officer of Oreo Mondelez maker said last The week the company was approaching retailers in Europe about another country price After the price hike earlier this year.
Mondelez first quarter edge declined The company said 38.4% from 41%.
Nestle is the world’s largest food maker, said last This month, sales are expected to grow by about 5% year distance higher Pet food, dairy and coffee prices.
While sales revenue risecheck out some of the branded packaged products of packaged food companies market share to retailers with Cheaper private Label products, such as Aldi. customers stock uplike war in Ukraine excite risk of shortage that will also drive More prices.
“Note higher Sales across all our brands and over All categories, ‘Rolf Boyle, Management director of international Buying at ALDI Nord, Reuters. “At the moment we especially have the effects of storage in for us pantry category such as oil, pasta, rice, canned food, and flour.”
