Supermarket executives expect the continuation of a decline in sales volume in the first half of 2024, reflecting the impact of price increases on demand, the Retail Consumer Goods Research Institute (IELKA) said in a survey released on Tuesday.

The survey on FMCG trends said that the volume of sales is expected to fall by 1.3% in the first half of 2024 compared with the same period last year, while the value of sales is expected to rise by 1.6% over the same period. The survey was conducted in the period January 15-31 on a sample of 130 executives from the supermarket sector. A 62% of respondents said the value of sales will rise in the first half of the year (down from 80% in the previous survey) while a 15% expected a decline. Executives expect a decline in the volume of sales by 1.4% in the first half of 2024 (up from -1.1% in the previous survey).

Thirty-five percent of respondents said economic conditions improved in the second half of 2023, while a 38% said conditions deteriorated. This reading is the third highest since January 2017. IELKA said the factors significantly affecting price increases were transport costs (85%), international raw materials prices (75%), energy costs (60%), labour costs (59%), regulation (55%) and the cost of money (53%).