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Aisles Abroad is a regular feature that examines notable grocery initiatives outside the U.S.
Addressing consumer concerns about prices is an ongoing issue for grocers across the world.
Even as the rate of grocery inflation continues to slow in U.S., shoppers have yet to shift their attention away from food prices, with some turning to discount grocers and mass retailers to stretch their budgets. Similarly, food-at-home inflation is cooling in the U.K., yet customers there are flocking to discount grocer Aldi.
Here’s a look at how some grocers around the world have rolled out new initiatives, marketing campaigns and savings recently to attract and keep price-sensitive customers.
Family meal for a deal
Earlier this month, African food retailer Shoprite announced it partnered with a small local supplier to offer a meal that feeds a family of four for about 20 South African rand ($1). The one-pot meal, which is available at select Shoprite stores under the grocer’s Homegrown private brand, includes noodles, soya chunks, spices and dehydrated vegetables in three different flavors: steak and chops; jalapeno and cheese; and roast chicken and vegetables.
The tie-up comes as “the cost-of-living crisis intensifies,” Shoprite said in the announcement, noting that the meal costs less than 5 rand a head for four people. It’s an example of how grocers can combine their store brand programs with a supplier partner to create an exclusive, low-cost offering.
Shoprite, which operates more than 3,300 stores across 10 countries and focuses on being a low-cost leader in South Africa, said that it has ramped up its efforts to help customers battle price increases and stretch their dollars, noting that it continues to sell a loaf of bread, a pack of sanitary pads and a selection of deli meals all for 5 rand
Calling out suppliers
Carrefour made headlines last fall when it decided to put suppliers on blast for high food prices. The French retailer added “price warning” labels on products like Lindt chocolates and Lipton iced tea to encourage CPGs to lower prices ahead of contract talks, Reuters reported. The “shrinkflation” labels flagged to consumers which products got smaller yet cost more.
“Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy,” Stefen Bompais, a Carrefour spokesperson, told Reuters.
Bompais told The Guardian in the fall that the labels, which the retailer brought to all of its stores in France, would stay until the targeted suppliers agreed to reduce their prices, adding that the warning could get added to more items in the future.