According to recent data from Kantar Worldpanel, released on January 29th, consumer behavior remains influenced by past trends despite a calmer inflationary period. Shoppers continue to fill their baskets with fewer items, reflecting enduring habits formed during times of higher food prices. The market research firm reported that daily household spending in France decreased by 0.9% between 2023 and 2024 across various retail formats. This shift is significant for a consumer goods market valued at €120 billion annually. Specific categories like cleaning products, personal care items, beverages, and fresh produce saw notable reductions in expenditure.
Despite the ongoing deflation since June, consumers have not yet perceived a decrease in prices, as they remain higher than in 2022. Gaëlle Le Floch, Strategic Insight Director at Kantar, noted that while there isn't a collapse in consumption, the anticipated recovery has not materialized as expected. The lingering effects of the pandemic and inflation have led to more frequent but smaller shopping trips, favoring private label products. Additionally, concerns about purchasing power and future economic stability persist, contributing to what Le Floch described as a "price increase trauma" unprecedented in recent decades.
This behavioral shift has also fragmented shopping patterns, with consumers visiting more stores than before. Specialty retailers are thriving, competing with traditional supermarkets either through ultra-low-cost offerings or premium fresh produce. The divide in purchasing power is becoming more apparent, with 20% of households struggling to make ends meet. Notably affected groups include workers, farmers, intermediate professions, and families with children, whose spending has seen the sharpest declines.
The changing landscape reflects deeper economic anxieties and evolving consumer priorities. While some sectors experience growth, others face challenges as shoppers adapt to new financial realities. The resilience of these altered habits suggests a long-term impact on how consumers approach their everyday purchases, signaling a potential shift in retail dynamics.