What decreases the more it rises? A study released last week by Kantar Worldpanel, a consumer research organization, reveals after 12 years of stable grocery patterns, 80 percent of Argentines are spending less at the supermarket (despite making more trips).
2016’s third quarter marked the beginning of the trend, with a two percent decrease in purchases. The last quarter? A three percent decrease compared 2015’s last quarter. Overall, Kantar Worldpanel calculates a four percent decrease in 2016 consumer spending.
So what are Argentines leaving out of their shopping carts? Beverages, particularly dairy, have fallen the most. Also down are processed products, like liquid infant formula and refrigerated desserts. The majority of those sacrificing supermarket convenience are from the lower and middle class, indicating cost as the largest driver for shifted spending habits.
In a context where consumers are paying special attention to prices, the most expensive brands must change their prices and marketing strategies, Kantar Worldpanel’s Commercial Director Federico Filipponi warns, this is especially true if they want to compete with cheaper produce and discount markets. More economic packaging, second tier and cheaper brands, can help stores reel in sales while minimizing losses.