Supermarket Sweep
In this next edition of ‘Power to the Pricing People’, we’re serving up the latest on grocery prices across the globe.
Inflation Cools, But Prices Remain a Concern
Across the globe, inflation is continuing to ease but the cost of living is still firmly in the spotlight, and supermarket prices are taking a lot of the flak.
US inflation has cooled to its lowest level since February 2021, paving the way for the Federal Reserve to cut interest rates for the first time since the pandemic. Meanwhile, UK and EU inflation levels continue to soften thanks to moderating energy prices but consumers across all regions are still feeling the pinch.
Food Prices Drop, but Don’t Celebrate Yet
Global food prices dipped slightly in August as cheaper sugar, meat, and cereals helped balance out pricier dairy and oils. The UN’s Food Price Index slid to 120.7 points, a far cry from the highs of 2022.
But don’t get too excited – Europe’s crops are struggling with bad weather, and food costs are still squeezing shoppers across the board. The price rollercoaster isn’t over just yet!
Common wisdom is that once prices go up, they never really go down again, but the reality is that baskets are getting smaller as consumers choose to buy fewer groceries and avoid non-essentials. As a result, manufacturers and retailers are feeling the pressure to reevaluate pricing strategies.
Big Retailers Slash Prices to Stay in the Game
In the US, grocery retailer Albertsons just dropped ‘Overjoyed‘, a new private-label line of affordable snacks, sweets, and baking staples. It’s their biggest launch in over a decade, aimed at budget-conscious shoppers. As inflation bites, private labels like this offer a value-driven alternative to branded items.
Other Major retailers like Walmart, Target, Amazon, and Walgreens have also been slashing prices to keep customers shopping through inflation. Walmart dropped prices on nearly 7,000 items, while Target and Amazon have cut thousands of everyday essentials, from groceries to household goods. Walgreens has jumped in too, reducing costs on 1,500 items, from snacks to toiletries, aiming to ease the pressure on tight consumer budgets.
However you’re reacting to changes in spending behavior, you need to be confident in your data. Contact Flintfox today to keep to avoid being left on the shelf.
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