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Cheap instead of organicCustomers save on meals because of inflation – also in Switzerland
In England, consumers have been doing without expensive branded products for a while. Now the Swiss retailers are also feeling the renunciation of their customers.
The supermarket chain Tesco reports fewer branded products sold, but own brands and frozen products are more in demand.
REUTERS
According to Tesco boss Ken Murphy, customers have to pay attention to every cent.
REUTERS
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Because of inflation, consumers are changing their purchasing behavior.
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Own brands are in demand instead of branded products.
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The wallet is no longer so loose.
Because of the rising prices, consumers limit themselves when buying groceries. In England, the supermarket chain Tesco has reported a drop in profits for the past six months because people are giving up expensive branded products and instead resorting to cheap private labels like these «BBC» writes.
According to Tesco boss Ken Murphy, customers are trying to use their money more wisely: “I know that they are going through a difficult time and have to pay attention to every cent.”
Own brands are now also in demand in Switzerland
In England, inflation in September was 8.6 percent, more than twice as high as in Switzerland (see box). But the Swiss population also changed their purchasing behavior. Instead of premium products and organic meat, they are increasingly turning to cheaper items and promotions, says Migros spokesman Marcel Schlatter: “We feel that the wallet is no longer so loose.”
Inflation is falling slightly
In September, inflation in Switzerland fell slightly to 3.3 percent – for the first time in almost two years. In August, inflation was still 3.5 percent, the highest level in almost thirty years.
At Lidl Switzerland, spokesman Mathias Kaufmann notes the same trend: “Our own brands are currently in greater demand.” The price issue is coming more into focus, but attention is still paid to quality. Fresh products, for example in the organic sector, are also in greater demand.
On request, the Aldi Suisse media office also reports a “significant increase” in demand for private labels across the entire range. According to spokesman Kevin Blättler, there is also increased demand for Prix-Garantie products at Coop. But organic is still in demand.