Rapid Inflation Boosts Value of Grocery Sales, But Shopping Volume Remains Stagnant

The sole trading group, S, saw an increase in market share last year.

Despite a decline in the volume of sales for the second consecutive year, grocery stores managed to increase their value by six percent due to rapid inflation. Last year, S Group was the only trade group to grow, thanks to price reductions that resonated well with consumers facing weakened purchasing power. According to Nielsen IQ’s grocery store register, S Group’s market share increased by 1.3 percentage points to 48.3 percent last year, while K Group and Lidl experienced a decrease in market share of 0.9 and 0.2 percentage points respectively.

S Group’s grocery sales grew by 8.9 percent, outpacing the overall market growth. Prisma and S-market were the primary drivers of this growth, with sales increasing at a faster rate than the market average. In contrast, K Group faced pressure on its market share due to accelerated inflation and declining consumer purchasing power.

Online grocery shopping also experienced modest growth last year, reaching 626 million euros, accounting for less than three percent of grocery sales. However, despite this growth, online shopping did not significantly impact traditional brick-and-mortar stores’ performance. Overall, the sales volume of grocery stores declined significantly for the second year in a row due to various factors such as economic uncertainty and changing consumer preferences towards healthier and more sustainable options.

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