European grocery market growing at “snail’s pace”
The amount consumers across Europe spent on everyday items, such as food, drinks and toiletries, rose in Q3 2016 by the third lowest level on record, according to Nielsen retail performance data released today.
In the third quarter of 2016, prices paid for fast-moving consumer goods (FMCGs) rose just 0.8% year-on-year, whilst volumes rose 0.3%. Consequently, grocery retailers saw a 1.1% increase in takings at the till – the third lowest figure since measurement began in the final quarter of 2008.
In Belgium, prices paid for FMCG goods increased by 2.3% — offsetting a -0.8% decline in volume of products sold, and resulting in a 1.5% increase at the till.
Across the 21 European countries measured, Turkey had the highest growth in takings at the tills (+8.1%), followed by Spain (+3.6%) and Slovakia (+3.5%). At the other end of the scale, the biggest declines were in Greece (-6.3%) and Finland (-6.0%).
Of the big five western European markets, Spain (+3.6%) had the highest growth, followed by Germany (+0.8%). The UK had the biggest fall among this group (-0.7%), and the third biggest fall among all 21 countries.
Read as: Europe’s 1.1% nominal growth reflects a 0.8% increase in prices paid and a 0.3% increase in volume
“The grocery market in Europe continues to grow at a snail’s pace, partly due to the performance of the big five markets, all of whom, except one, is performing below the European average,” says Olivier Deschamps, Senior Vice President Retailer Services Europe. “The exception is Spain which was boosted by a long summer and the consequent impact of tourists which helped improve the economic situation by driving high volume growth of seasonal products.”