Finland’s grocery sector saw sales values rise 4.2% in January of this year, compared to the same period last year, largely due to increased taxation on alcoholic beverages and tobacco.
The total value of grocery sales was €1.329 billion for the month, which was boosted by a 2.2% increase in the consumer price index for the period.
Prices for food and non-alcoholic beverages rose by 1.5%, while prices for alcoholic beverages and tobacco rose by 6.9%. However commodity prices remained stable, year-on-year.
The data was published by Päivittäistavarakauppa ry, the Finnish grocery trade association.
‘Excellent Trend’
“The January sales trend in grocery sales was excellent, commented Kari Luoto of Päivittäistavarakauppa ry. “In January the price level rose for the first time in three years. In particular, the price level rose in alcohol and tobacco, the taxation of which became tighter at the beginning of the year.”
Alcohol taxes were increased on 1 January of this year, while tobacco taxes have been increased three times in the past year, on 1 January 2017, 1 July 2017 and 1 January 2018.
A bottle of wine now costs on average, between €9 and €15 in Finland, while a packet of cigarettes costs between €6 and €7.
Format Growth
Smaller supermarkets posted the strongest growth in sales value for the period, up 10.2% compared to the same period last year. Large supermarkets saw sales value rise by 7.2%, while hypermarkets’ sales values rose by 3.4%.
However, standard sized supermarkets saw sales decline by 5.3% in January.
The data includes sales figures from the chains K-Citymarket, K-Supermarket, K-Market, Neste K, K-ruokakaupat, Alepa, Sale, Prisma, S-market, Herkku and ABC, Lidl, Tokmanni, M-ketju, Minimani and R-kioski.
Foodservice Sales
Päivittäistavarakauppa ry also released sales totals for the foodservice sector, for the month of December, which indicated that sales rose 0.7% compared to the same period the previous year, despite there being two fewer delivery days.
Revenue for the foodservice industry rose by 1.8% between January and December last year, totalling €2.05 billion.
“Consumers' purchasing power and confidence in their own economy are now positive, and eating in restaurants is on the rise,” said Luoto. “Last year's good net sales also correspond to the international trend in the growth of the industry.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
