Italy saw a growth in FMCG sales in Q3 2017, driven largely by increased food sales, however non food segments experienced a decrease, according to data from IRI.
Value sales were up 2.2% (+4.1% in Q2), while volume sales rose by 1.6% (+3.0%). Volume price grew by 0.7% (+1.1%).
FMCG prices remained weak overall, but all food sectors recorded a price increase in the past few months. Beverages suffered a setback due to the climate (a colder September than usual), although July and August were very favourable, also benefitting chilled and frozen food.
In Q3, alcohol sales were up 4.6% in value and 3.6% in volume; sales of non-alcoholic beverages grew by 4.3% in value and 3.9% in volume; frozen food sales increased by 4.6% in value and by 4.2% in volume; while chilled and fresh products were up by 3.6% and 2.8%, respectively.
The non-food sectors continue to be affected by deflation, which is hindering revenue growth, IRI said.
Promotional Activity
Promotional pressure in Q3 and over the nine-month period was lower than a year earlier, due to fewer private label promotions.
Private labels maintained their 18% market share, registering minor growth (+0.1%) on 9M 2016. Share of private labels continued to shrink a little in the home care and personal care categories, while private label assortment grew by more than that of national brands during September.
In Q3, volume demand increased in supermarkets (+4.4%) and drugstores (+5.8%), while discounters (-2.0%) and hypermarkets (-1.4%) recorded a slowdown. The migration of a some purchases from discounters towards other distribution channels led to an increase of prices in the FMCG formats overall (+0.3%). Within the supermarket channel, 'superstores' (shops larger than 2,500 square metres) continue to be the top performers in Italy.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
