18 January 2024, by Emily Proctor
Higher grocery prices pushed Dutch supermarket revenues to record highs in 2023, according to new data from the market research bureau NielsenIQ (NIQ). Dutch supermarkets’ combined revenue rose 8 percent throughout the last year, with companies turning over around 50 million euros.
Price surges particularly prevalent in first half of 2023
The boost in supermarket revenues was not down to an increased volume of goods being sold, but rather the increase in the prices of supermarket products. In the first half of 2023, this was seen to be the strongest.
In the first six months of the year, items such as sugar, bread and olive oil surged in price. This, combined with stores having to deal with rising energy bills, meant that additional costs were passed onto people’s grocery bills throughout 2023. The increased cost of raw materials exacerbated by the Ukraine war also played a role in higher prices.
10 percent wage rise for staff also increased food prices
Another major factor in the increased price of supermarket goods was the increased cost of labour for supermarket chains. In June 2023, many supermarket staff saw their wages increase by around 10 percent, which played a key role in the higher cost of groceries.
“Supermarkets usually enter into long-term contracts and that means a fall in energy or raw material costs is not immediately noticeable in the pricing. It will play a role once the time comes to negotiate new contracts with providers,” NIQ researcher Marten Suurmeijer told RTL Nieuws.
The 10 percent increase in wages for staff, which came into effect in June last year, also played a part in the price hikes, Suurmeijer said. “You can take it as a given that those costs are also factored in,” he said.
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