Due to the higher purchasing costs, products in the supermarkets should have undergone a price increase earlier. This has not happened so far because of the competition among supermarkets: they try to attract consumers with the cheapest prices. Because supermarkets saw their turnover grow in corona time, they have so far been able to absorb the higher costs without price increases for customers. According to analysts, this will not remain economically viable in the long term.
Strong demand development, supply lagging
Thijs Geijer, Sector Economist Food at ING, explains that raw materials on the world market are more expensive due to increased demand from China and disappointing harvests of, for example, soybeans in South America. ‘There is a strong development in demand and a lagging supply,’ says Geijer. The reopening of the economy through easing is also contributing to increased demand. ‘In the past period, the catering industry has also reopened, which brings with it new demand.’
As a result, consumers do not have to expect price increases in the short term. ‘At the beginning of the chain there is an increase in raw material prices, the raw material has to go through a number of links. Farmers, trade, processing industry, food manufacturers, and only then the supermarkets. It’s a gradual process.’ Supermarkets are also hesitant to pass on price increases for competition reasons. ‘They don’t want the customer to switch to a competitor that charges a more competitive price.’
A spokesperson for Jumbo confirms this. ‘We work in a very competitive market. We cannot then just raise prices, because that would price ourselves out of the market. And Jumbo also has the lowest price guarantee.’ Vomar also does not intend to implement price increases in the near future.
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