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Two large supermarkets lower and freeze prices on own brand products

2024-04-13T15:42:20.801Z

Highlights: Each chain applies its strategy to avoid losing impoverished customers due to the fall in wages in the face of inflation. Retail sales, according to CAME data, plummeted 25.5% annually in February. Carrefour will keep the prices of 1,500 own brand products fixed until July 15, 2024, in the 22 provinces where it is present. Chango Más, for example, has had a “protected basket” since the end of last year, “at the cheapest price in the entire modern supermarket channel,” according to the chain. For its part, businessman Alfredo Coto has just launched its first national call for suppliers for its own brand in March. The objective is to expand the offer and "contribute to the business development of the neighborhoods and communities where we operate," they said. The company already presented 36 new products, such as powdered milk, juices and flavored waters, cookies, marinades, condiments and cleaners. Diapers, yogurts, frozen potatoes and instant cocoa are among the most valued launches.


Each chain applies its strategy to avoid losing impoverished customers due to the fall in wages in the face of inflation.


Approximately a month ago, the Minister of Economy

Luis Caputo

came out to criticize supermarkets for offering discounts and promotions of the 2x1 type under the argument that the INDEC does not take this type of discounts into account when measuring prices and, therefore, Therefore, they were not reflected in monthly inflation.

A few days later, the Chilean company Cencosud, owner of

Jumbo, Disco and Vea,

took the official's request and

reduced some 1,000 own-brand products

individually for 30 days instead of offering the promotions. Something that Caputo celebrated on social networks with "applause" emojis.

Now,

Carrefour has joined the movement

. The French chain presented the sixth edition of

Precios Corajudos

. Under the motto “Defending price and quality”, the company

will keep the prices of 1,500 own brand products fixed until July 15, 2024,

in the 22 provinces where it is present.

“We are convinced that our own brand is the best price and quality alternative to accompany people in their daily purchases,” said Néstor Sist, co-Executive Director of Carrefour in the country, about the initiative. Meanwhile, Candela Arias, co-Executive Director of the chain, recalled that the Precios Corajudos program

was implemented six years ago

as "a commitment to planning the domestic economy" affected by inflation.

As reported, the company continues to expand the variety of its own brand and, in the first quarter of 2024, it already presented 36 new products, such as

powdered milk, juices and flavored waters, cookies, marinades, condiments and cleaners

, among others. Diapers, yogurts, frozen potatoes and instant cocoa are some of the most valued launches, commented the supermarket managers.

These types of actions taken by supermarkets are part of the sharp drop in consumption. Retail sales, according to CAME data,

plummeted 25.5% annually in February

and one of the items with the biggest drop was

Food and Beverages.

In this sector, the decrease reached 33.3%.

Each chain with its strategy

Other chains, meanwhile, are implementing other pricing strategies to sustain sales.

Chango Más, for example, has had a “protected basket” since the end of last year.

It is a set of 119 basic products, “at the cheapest price in the entire modern supermarket channel,” according to the chain.

“The basket includes more than 40 basic categories of grocery, fresh, beverage, hygiene and perfumery products, among which stand out: oil, dairy products, flour, herbs, coffee, diapers, bleach, cleaners, among others. All products are marked on the shelf with labels and special signage to facilitate their identification," commented a source from that chain.

From Coto, they explain that the chain's contribution to the crusade against inflation involves “making

strong discounts on about 15,000 products every weekend

or expanding the number of days in which offers are made that can range

from 30% at 50%

. “In a weekly projection, in number of days, it is the same as freezing for 30 days and with more products,” they explained on the local chain run by businessman Alfredo Coto.

For its part, the Spanish company Dia has just launched its first national call for

suppliers for its own brand in March.

The objective is to expand the offer and "contribute to the business development of the neighborhoods and communities where we operate," they said.

NE

Source: clarin

All business articles on 2024-04-13

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