Retail chains in Russia began to reduce the range of food products. Optimization is taking place facing a transformation in trade, a decrease in store space and the purchasing power of the population.
Networks are actively optimizing the range of food products, in particular dairy products, Nielsen experts concluded. Sales of butter and margarine decreased most noticeably (a drop of 9.6% in physical terms), sales of thick yogurts increased (an increase of 8.6%).
“It is important to note that the decline in sales in stores is often caused not by a widespread rejection of dairy products. For example, the most significant negative factor that affects the dynamics is the optimization of the assortment. According to the results of the past 12 months, it has expanded only in the category of dairy desserts,” the Nielsen report says.
Analysts identify two groups of related causes: economics and buyer behavior. At the same time, other factors also play a role, including a drop in purchasing power and a decrease in store space.
“The slowdown in the economy at the same time with an increase in the fiscal burden naturally reduces the purchasing power of the population. And retail chains are adjusting to this trend, – Sergey Khestanov, economist, associate professor of RANEPA, explains. “Apparently, the potential for growth in the purchasing power of the population caused by a shortage of workers has already been exhausted.”