Adjusted for inflation, European food retail sales fell 7.1% last year as consumers paid closer attention to prices. Pressure on margins also continues. Retailers are seeking refuge in cooperation and further automation.
Prices rise, volumes fall
High food inflation had a solid impact on consumer behaviour in 2022: households saw costs rising faster than their incomes and therefore bought cheaper products, more private brands, more often from discounters. Total grocery sales still grew by 2.9% in Europe, but that growth was the result of 10.7% higher prices, compared to a volume decline of 3.6% and a “downtrading” effect of 3.6%.
