ECONOMY

Food product offers hurt private-label sales

The market share of private-label products at Greek supermarkets remains stagnant as big companies’ extended offers have considerably diminished the price difference between supermarket products and famous brands. It appears that even the financial crisis has failed to put a dent in Greek consumers’ faith in their favorite brands, especially when they can find them at competitive prices.

According to the latest data compiled by market research company IRI, the market share of private-label products remains below 20 percent, amounting to 19.3 percent in the first four months of this year. That constitutes an increase of just 0.1 percentage point over last year’s 19.2 percent, highlighting the slowdown in the growth of market penetration, as the market share had amounted to 18.4 percent in 2013.

This phenomenon is explained by the major offers on mainly food products of famous brands, which along with drinks cover 75.2 percent of the entire turnover of Greek supermarkets. Therefore private-label food products saw their share drop to 18.9 percent this year from 19.2 percent a year earlier.