In February 2023, Eurostat reported an 8.5% increase in food prices in Europe. Since 2022, food inflation has reached 15% in the eurozone, a record since its creation1. In the United Kingdom, the ONS reports similar figures, with an 8.8% increase in January compared to the previous year2. Faced with this historic inflation, many grocers have implemented solutions to improve consumer purchasing power.
"Anti-inflation" baskets
The goal of these baskets is for the chains to improve the purchasing power of their customers despite the general rise in prices. In France, Système U, Intermarché and Casino have set up "anti-inflation" baskets, based on consumers' essential needs3. At Système U, for example, the price of the products concerned has fallen by an average of 14%4. For their part, Casino chains are offering 500 products for less than one euro for three months, including 60% of food products with a Nutriscore A, B or C5. Across the Channel, Waitrose has also lowered the price of 300 of its products by around 14% to combat inflation6.
The promotion of own brands
According to the latest NielsenIQ report, private labels now have a 32.6% share of the French food market. With inflation, 62% of consumers actually turn to these products when the prices of major brands are too high7. According to a study by the Observatoire Cetelem de la consommation, price is even the main criterion for 61% of Europeans when buying a product8. Several brands are therefore promoting their private labels to improve their customers' purchasing power and meet their new needs. This is the case for Asda in the UK, which launched its "Just Essentials" range in 2022, with 293 essential everyday products9. The Alertr price tracker has revealed that "Just Essentials" products are among the most attractive on the market10. For its part, Morrisons has chosen to relaunch its "Savers" range to combat inflation11. The company has invested £16m in 263 everyday products for consumers.
"Anti-waste" baskets
In March 2023, Eurostat highlighted that food waste in Europe represented 132 billion euros per year, or nearly 300 euros of food thrown away per person per year12. In a context of historic inflation, the fight against waste is therefore also becoming a solution to combat rising prices. This is why several retailers have chosen to create "anti-waste" baskets. In the UK, for example, Morrisons has followed many of its European colleagues, including Carrefour and Monoprix, by joining forces with the Too Good To Go application. The retailer can now offer its customers baskets of perishable foodstuffs for only £2.99. Their affiliation has already saved one million food baskets, or 1000 tons of food13in addition to offering cheaper products to consumers. In France, several retailers such as Auchan have also implemented anti-waste baskets, with products up to 50% cheaper14.
According to the latest NielsenIQ report, own brands now have a 32.6% share of the French food market
Price comparison services
In addition to price cuts and anti-waste baskets, some retailers are using price comparison tools to help consumers fight inflation. In France, the retailer Leclerc uses its "Who's the cheapest?" website and application to compare the prices of more than 4,000 products every month.15. The retailer boasts that it offers the cheapest products on the market. In the United Kingdom, Tesco has aligned the price of a number of products, including major brands, with the prices charged by Aldi online or in its stores in England, the Netherlands and Scotland. On its website, these products are identified by the words "Aldi Price Match".
About us Mealz
Mealz works with retailers to help consumers maintain their purchasing power. Among the actions implemented, the Mealz contents food team creates collections of meal ideas that respect a tight budget of less than 3 or 4 euros per person. In addition, shoppers can modify each suggested product from a selection of similar products, some of which are low-priced. They can also click back to the products recommended by the Mealz algorithm, based on their tastes or previous purchases.
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