Analysis by global insight leader, IRI, has highlighted that the Italian market is starting to recover: large retail chains will record growth of 1.4% in sales value and of 1.7% in sales volume by the end of this year.
A new IRI report reveals that there are signs of recovery in Italy’s domestic consumption and spending. The market research firm IRI confirmed that large retail chains will record growth of 1.4% in sales value and of 1.7% in sales volume by the end of this year. While domestic consumption started to gain ground in 2015, the report estimates that Italian household spending on food products will see an increase up to 1.6% during 2016. The value of food sales across Italy will grow slightly next year.
The authors of the report commented that, to some extent, Italian food consumption is witnessing the ongoing impact of three factors: new consumer confidence in the market, multichannel strategies operated by the food industry and finally more attention paid to food waste initiatives. Moreover, it is important to stress that promotions are no longer paying off. The IRI report also indicates that promotional activity is fairly static, with the proportion of product sales on promotion only increasing by 0.5% for food items. While lower prices suggested better deals for shoppers, this does not necessarily translate into sales growth.
