Inflation has cost households in 2023, and the new increases announced for this year could only reinforce the difficulties of some of them to make ends meet. At the supermarket, some are currently betting on Trading Down.
If do the shopping was until a few years ago a chore for some, it has become for several months a real headache for many households. Indeed, inflation has caused the average price of the consumer basket to jump in France, particularly since the outbreak of the war in Ukraine. So much so that the large distributors themselves have to work together to be able to maintain a suitable price, like Carrefour which recently decided to remove all PepsiCo brand products from its shelves due to the seemingly untenable price increase.
The numbers speak for themselves! In December 2023, INSEE delivered new figures relating to the rise in prices and reported that it exceeded the 12% over one year. A major increase for all households, but even more so for the most modest despite the state aid previously announced. This is why practices have evolved significantly, and some consumers have decided to use, without knowing it, what is called Trading Down.
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What tips to save money?
Trading Down, Kesako? It’s very simple, and there’s a good chance that many of you can relate… Instead of favoring popular brands, sold in (almost) all major brands, households are more likely to favor distributor brands. They are generally cheaper despite galloping inflation. According to the international firm which analyzes consumer purchases in mass distribution, also called Iri, the increase in purchases for distributor brands such as Marque Repère (E. Leclerc) or Produits U (Système U) is equal to 7.4% when that of national brands is in decline of 3% (2022).
According to the institute, “the rise in prices is such that the French can no longer upgrade their purchases”. It is reported that “there are more first prices in the baskets, fresh products and organic products come out”. “The French are even more attentive to good deals and favor brands with a strong price image”we also underline.
Fortunately, despite the rise in prices, several tips allow you to make some savings, including listing your purchases before going to supermarkets to avoid compulsive purchases, comparing prices carefully before buying, favoring seasonal products and consuming locally, or even reviewing your cooking basics to avoid any food waste. It’s up to you !
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