Spaniards are increasingly comparing prices between different stores and actively hunting for offers. Where before, consumers previously remained loyal to one supermarket. Consequently, this trend has led to a price war among supermarkets.
They will do everything they can to retain their most loyal customers. According to a recent report from NielsenIQ, seven in ten consumers are now sensitive to prices, offers and discounts. This has prompted a supermarket price war, leading them to compete with temporary promotions, social media advertisements and even in-store loudspeaker announcements.
According to Alvaro Zafra, general manager of the Andalucian Confederation of Food Companies (CAEA), customer loyalty is at an all-time low. “People plan more and if they have to switch, they do.”
In a surprising twist, some chains have announced their participation in Black Friday, a phenomenon that has until now been limited to sectors such as fashion and technology. “It’s about engaging consumers and driving purchases,” says Zafra in Diariosur.es.
Less focus on fresh products
Rising costs have also led to a reduction in the purchase of fresh produce. According to figures from the Spanish consumer organisation OCU, nine out of ten consumers have changed their eating habits by opting for cheaper alternatives and offers. People who normally buy beef switch to pork or chicken or no longer eat Iberico ham but buy the cheaper variants.
Financial consequences for supermarkets
Despite the price increases of several products such as olive oil, supermarkets note that this increase does not directly translate into higher profits. “More turnover does not necessarily mean more profit,” Zafra warns.
What to expect?
Bernardo Rodilla, customer area director of Kantar Worldpanel, notes that promotions are becoming increasingly important in the shopping cart and expects this trend to continue in the coming months.
Also read: Where are the cheapest groceries in Spain?