Households spend more than S/6,300 a year on purchases: wineries and discount stores are the favorites

Peruvian households make up to 335 purchasing visits a year without distinction of channels: from a warehouse to a wholesale market. On average, for each visit, they spend S/19.1 according to Kantar Division Worldpanel Perú. Thus, we deduce that the average purchases amount to S/6,398.5.

Traditional local channels, such as wineries, discount stores (discounters, in marketing jargon and as an example, Mass) and retail markets, play an important role here. For example, small businesses have a penetration rate of 99.1% and supply centres, 95.9% – adds Kantar in its report Shopper Day 2024: decoding consumer trends.

Meanwhile, modern channel spaces such as self-service and discounters have penetration rates of 68.1% and 44.5%, respectively. However, a study by the SAE de Apoyo Consultoría specifies that the Discount stores have the greatest variation in participation within the household mass consumption basketwith 12%. This is followed by wineries (10%) and markets (4%). On the other side of the coin, there is a decline in the participation of wholesalers, pharmacies and bakeries.

“The Peruvian buyer looks for the best equation between value and price, which is why they expand the range of channels they visit and make up to 335 purchasing visits annually,” comments Patricia Buchhammer, manager of Advance Analytics at Kantar.

They add that between May 2023 and April of this year, the peruvian homes They are adapting to the evolution of prices, but they have not stopped defending their consumer categories. They visit nine purchasing channels every quarter, one more channel on average compared to last year.

The most important purchasing channel is, in all of this, wineries (37%). The supply markets (29%) and the modern channel (19%) follow this line.

What do Peruvians spend their money on?

In 6 baskets Kantar found a Recovery in the incidence of consumption with pet food led the way, as it had an increase of 13.4% in interannual terms. They are followed by beauty (8.7%); food (5.7%), beverages (5.5%) and personal care (1.5%).

However, the bulk of consumption continues to be dominated by food, with 42%. In order of importance, we find beverages (14%), dairy products (13%), personal care (11%) and home care (13%).

Likewise, they note that the control of inflation – which fell to 2.0% in metropolitan Lima in interannual terms – favors consumers returning to their homes. favorite brands and even the recovery of the premium products sector. For example, budget brands account for 9% of the value of purchases, followed by 66% of mainstream brands and 20% of premium brands.

“Given the improvement in the economic environment in the first months of the year, the expectation is that households will have moderate growth in their consumption. The control of inflation and the recovery of income in the second quarter of the year allow households to defend their favorite categories and brands. However, omnichannel would remain,” adds Buchhammer.

And, within the spending structure, we find that 7% is allocated for immediate consumption purchases, 30% for local purchases, 44% for replacing goods and 20% for groceries. In the case of the wineriesThe Kantar study states that 19% take up to 4 units per visit and per category and in the wholesale sector, up to 8 units.

How are small retail stores doing?

According to Macroconsult, small formats boost the offer in the retail stores. There is a greater presence of food stores, followed by department stores and home improvement stores.

By brand, there was an increase in Mass – with 300 stores outside Lima. Tambo is far behind, with 40 stores beyond the capital, and Oxxo, with 4. Dollarcity and Miniso close the table with 18 and 11, respectively.

Be careful with the size of the products

Crisologist Cáceres, president of the Peruvian Association of Consumers and Users (ASPEC), warns about redflation: the practice with which manufacturing companies reduce the content of a certain product but maintain or increase its price.

Is it legal? Of course. This move by the manufacturers does not mean any violation of the regulatory framework, but they would be engaging in a deceptive practice – in the opinion of Cáceres – since they are taking advantage of a consumer’s trust and loyalty to a certain product.

The head of Aspec urged Congress and the Government of Dina Boluarte to promote a measure that corrects this bad commercial practice, and make companies report on the signs that adorn the shelves that a product reduced its size, since, as we mentioned , reading the packaging is not enough due to purchasing habits.

He gave as an example countries like France, where it was established that supermarkets of more than 400 square meters must place signs warning about the reduction in the size of a good. “It is not that they are prohibited from doing so because it is an attack on the environment.” free market“, he added.

What are the products preferred by Peruvians?

● The consumer brands preferred by Peruvians, according to Kantar, are Gloria in first place, Doña Gusta in second and San Jorge in third. Inca Kola and Coca Cola complete the podium, as well as Bolívar, Ajino Moto, San Fernando Sapolio and Molitalia.
● Mauricio Cheng Matsuno, Country Manager of Kantar, says that there have been very interesting changes in a context where consumption is recovering.
● “The top 5 most chosen brands seek to maximize consumption moments within the home, including social moments,” he clarified.
● In the beverage category, the family favourites are –apart from the aforementioned soft drinks– Cielo, Nescafé and Altomayo. In personal care, the favourite is Head & Shoulders.
● Colgate, Babysec, Sedal and Pantene complete the list. Kantar points out that Peru has more growing brands compared to Latam, where 53% of brands are growing.