Candles 9.2% more expensive YoY – price increases in cash&carry, supermarkets and convenience stores, declines in hypermarkets and discount stores

COMMERCECandles 9.2% more expensive YoY - price increases in cash&carry, supermarkets and convenience stores, declines in hypermarkets and discount stores

An analysis of prices from over 10.2 thousand stores shows that candles this year are on average 9.2% more expensive than last year. The increases can be seen in the cash & carry networks, supermarkets, and convenience stores – by 41.2%, 27.2%, and 2.2%, respectively. Meanwhile, in discount stores, these kind of products have become cheaper by about 12.5%, and in hypermarkets – by as much as 56.9%. There has also been a visible decrease in the number of promotions on the market, which fell by 9% on a year-over-year basis. Decreases were noted in supermarkets, convenience networks, and cash & carry – by 23.3%, 23%, and 11.7%. However in discount and hypermarkets, more promotions have been introduced. The increases in these segments were 1.2% and 12% on a year-to-year basis.

From an industry analysis by UCE RESEARCH, Hiper-Com Poland, and the BLIX Group, it follows that this year, candle prices in stores have increased on average by 9.2% on a year-to-year basis. According to authors of the report, this is a significant increase, especially compared to the overall rate of rise in prices in stores, which in September amounted to less than 5%.

“The difference suggests that the candle segment is more susceptible to price increases than other product categories. The main reason for this phenomenon is the seasonal nature of demand, which intensifies around All Saints’ Day. An increase in production and transportation costs, and rising raw material prices, such as paraffin or glass, also contribute to this increase. Additionally, higher inflation in previous months has likely lead manufacturers and retailers to decide to increase prices more significantly in this category, in an attempt to compensate earlier losses”, says Julita Pryzmont, co-author of the Hiper-Com Poland report.

The research also showed the largest price increase on a year-to-year basis in cash & carry networks and supermarkets – by 41.2% and 27.2%, whereas convenience stores – 2.2 % – were further down. “Cash & carry networks generate higher operating costs, associated with the storage and logistics of large quantities of goods. The rise in energy and fuel prices can have a stronger impact on their operations, compared to supermarkets and convenience stores. Less competition may provide them with more freedom in shaping prices”, explains Dr. Krzysztof Ɓuczak, the second co-author of the report from the BLIX Group.

Meanwhile, in discount stores and hypermarkets, price reductions have been noted – by 12.5% and 56.9% respectively. “Discount stores often rely on aggressive pricing and extensive promotional campaigns to attract customers, which in this case has translated into a reduction in candle prices. In turn, hypermarkets, which have recorded a significantly larger decrease in purchasing costs, could have reacted to reduced competition in this category and a desire to maintain a larger number of customers around All Saints’ Day. Larger hypermarkets are more flexible in their pricing policies, allowing them to make more aggressive price cuts, especially for seasonal products such as candles”, explains Julita Pryzmont.

In addition, the report shows that the number of candle promotions in stores has decreased by 9% on a year-over-year basis. Decreases were noted in supermarkets, convenience networks, and cash & carry – by 23.3%, 23%, and 11.7%. “In recent years, under conditions of high inflation and a decrease in consumers’ purchasing power, networks have introduced many economic product variants. However, this year, with increasing purchasing power and higher quality demands from customers, retailers’ strategies have changed. Retailers have focused on less variety, the best models, and have significantly limited the economic segment. This does not necessarily indicate a decrease in interest in this category, but rather a shift in sales to the best products, representing the mid-price level”, says Piotr Biela from the BLIX Group.

Analysts from UCE RESEARCH report that more promotions have been introduced in hypermarkets and discount stores. These segments have seen increases by 12% and 1.2% respectively. This, they believe, is the result of a very strong competition for customers. “In the case of discounters, this is mainly the fallout of the promotional war between Lidl and Biedronka. The goal here is to stand out with a better, more attractive offer, and these market players are very determined. For hypermarkets, the issue is more difficult. It is linked with the struggle to acquire customers against the general deterioration of the situation in this segment, as hypermarkets’ share in the retail market is steadily decreasing”, concludes Piotr Biela.

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Description of the research method

Data comes from the report of the UCE RESEARCH analytical research platform, the research and analytical agency Hiper-Com Poland, and from resources of the BLIX Group. The analysis shows the average cost of candles, as noted from year to year. The same periods from 2024 and 2023 were compared, that is, all offers available on the market (promotional and regular prices) effective from January 3, 2023 to November 2, 2024. In total, prices from more than 10.2 thousand stores belonging to 54 retail networks were compared. The research covered all discount, hypermarket, supermarket, convenience, and cash & carry stores on the market.

Source: https://managerplus.pl/znicze-drozsze-o-92-rdr-wzrosty-cen-w-cashcarry-supermarketach-i-convenience-spadki-w-hipermarketach-i-dyskontach-82414

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