The 20th week has entered “household basket» with the government’s financial staff expressing satisfaction with its progress so far. At the same time, it is becoming increasingly popular as consumers seek to take advantage of its offerings, mainly due to the increased cost of living and reduced disposable income.
The significant response that the “household basket” has found in the daily lives of consumers was recently confirmed by the Minister of Development and Investments, Adonis Georgiadis, stating that during the 20th week of its implementation, out of 1,134 products, 62 (5.47%) showed an increase, 72 (6 .35%) showed a decrease and 1,000 (88.18%) remained stable.
On average, over the past three weeks, the total value of the basket has fallen more than 3%. “I said that from March we expect the de-escalation of inflation to begin to be seen on the shelf and indeed, I want to thank the supermarket chains because the difference is already evident in the basket in the last three weeks. That is, those who regularly shop from the basket will see that the prices are a little lower on some products and quite a bit lower on some other products than a few weeks ago” said Mr. Georgiadis and added that “in general we have a reversal of the flow of prices. From where we were going up, now we are steadily going down.”
It is noted that the minister has announced a three-month extension of the “household basket” which, in accordance with the current legislation and based on the approval given by the Competition Commission, lasts until March 31, 2023. Also, contacts have begun to contain prices in the Easter market, including meat, according to the leadership of the Ministry of Development and Investments. “We are already in discussions with the meat market to see where the Easter goat and lamb will range this year. And there I believe that with the measures we are taking, we will be able to hold down prices and help people buy for the Easter table as best as possible” said Mr. Georgiadis in his statements. He even announced an offer on cod for March 25, which is the traditional feast of that day.
The two “baskets”
At the same time, it is planned to create two “baskets” for Easter and in this context, in the coming days, it is expected that the relevant legislation will be passed so that the measure can be extended and then, in view of the Easter season, the “Easter basket” will be created in the supermarkets as well as the ” godfather’s basket” in toy stores. The “Easter basket” will essentially take the place of the “Lent basket”, a few days before Easter and will be created to meet the needs of consumers when shopping for food for their Easter table.
This new “basket” is expected to include additional items in the meat category, lamb and goat, also buns and chocolate eggs. As far as the “godfather’s basket” is concerned, it will work similarly to the one implemented during the Christmas period, in toy stores. The categories of games it will include are expected to be similar to those in “Santa’s basket”. At the same time, the candles will also be added for the purchases of the godparents in their christenings. It is recalled that the categories in the “Santa’s basket” were: Board / Puzzles, Toys with dolls, dollhouses and other accessories (pretend toys), baby toys, action figures, construction and creation toys (eg brick toys) , vehicles – remote control, electronic toys, sports toys (eg balls, children’s basketballs and goals), soft toys, musical toys.
Six out of ten buy from the “household basket”
The ‘household basket’ is becoming increasingly popular with consumers even switching supermarket chains to take advantage of the best deals. As evidenced by a survey carried out by the Consumer Goods Retail Research Institute (IELKA) in January on a sample of 1,000 consumers, in the first 3 months of operation of this initiative, 64% of the public declares that they buy products from the basket. This percentage is almost double compared to the previous measurement after the first week of the initiative, when the percentage of the public buying from the cart was 39%. On average, the public who buys products from the cart declares that 16.3% of their purchases come from products in the cart (around 1 euro per 7 euros of purchases). The majority of the public 39% makes up to 10% of the basket, 11% from 11 to 20% and the remaining 24% more than 20% of the purchases.
According to the research, 17% of the respondents visit a supermarket different from their usual one in order to find products from the “household basket”. “This element is healthy for competition in the sector, it shows that there are additional incentives for competition in the market and that the mobility of the consumer public is expected to intensify in the next period” IELKA claims
23% positively evaluate the initiative (this percentage increases to 35% of those who buy from the basket, 53% recognize the usefulness of initiatives such as the basket and state that businesses should do more such actions. 54% state that it takes too much time to shop, a reality already documented in the past for consumers who follow offers in their food retail purchases 85% say it’s not enough to deal with punctuality, something which is to be expected, since the problem of accuracy is multifactorial and international.
The vast majority (84%) of consumers say they would prefer VAT on food to be reduced over the “household basket”. Also, 70% say they would prefer more offers and discounts in supermarkets over the basket. 47% would like other branches to be included in the basket, such as butchers and bakeries, while 60% are not satisfied with the number of products and would therefore prefer more products in the basket. Finally, just 35% would prefer to switch to branded products only, which shows the penetration that private label products have gained recently.