NIQ Retail Spend Barometer
Chile
Performance of the Traditional Channel, Supermarkets, Pharmacies/Perfumeries, and Convenience Stores (FMCG_Chile) in the Last Year
- The basket for the last mobile year shows a +2.8% increase in billing and a -1.6% decline in consumption, with the most recent quarter showing greater stability at -0.7% (consumption).
FMCG The deceleration in the prices of the mass consumption basket continues, going from an 11.6% increase in Q3.23 to a +3.9% increase in Q3 of 2024.
The weighted average price continues its trend of decelerating price increases, now at a 4.7% increase. This positively affects consumption, with a less pronounced decline, the most recent period showing a -1.6% drop year-to-date.
In general, we see some short-term recovery in consumption, where supermarkets show a year-to-date consumption decline of -1.3% compared to the last mobile year, which recorded a -2.2% drop.
Meanwhile, the traditional channel shows a gradual deceleration in its price levels, resulting in greater stability in short-term consumption, with a YTD of -2.1% vs. the last quarter (Q3) at -0.2%.
In the case of F&P, we are already seeing an increase in consumption in the last quarter, +5.3% compared to the year-to-date, which still shows a decline of -0.2%. This is also influenced by price stabilization.
T&D recovers its growth this year
The technology and durable goods market also saw a 2.1% increase in spending compared to the same period last year (3Q), signaling a good indicator of recovery in the durable goods market. This strong performance is linked to the Children’s Day event (Cell phones & Computing) and the end of the Winter campaign (Heating).
Looking at sales channels, both experienced positive growth in Q3’24: Physical Stores (+6.1%) vs. Online Channel (-1.8%), 1P (-1.9%) and Marketplace (+11%).
Sales distribution during the period was led by the Online channel, which accounted for 46% of sales, split between 35% 1P and 11% Marketplace, while Physical Stores represented 54% of the sales in the last quarter, contributing to the good performance of the period.
By family categories, the highest sales growth in Q3 came from Personal Care (+11%), followed by Telecom (+8%) and Consumer Electronics (+6%), all related to the Technology and Personal Care sectors.
On the flip side, there are opportunities in categories such as: Entertainment (-11%) and Mda/Sda (-3%) compared to the same periods in 2023, linked to limited offers and product shortages during the period.
“Starting with a strong first semester in Durable Goods and Technology, where we saw a +4.1% growth in value, linked to the Back to School campaign and online promotions (Cyberday events), now in Q3’24, we are seeing positive growth (+2.1%) despite the increase in macroeconomic data in Chile. The good results are maintained because consumers prefer to wait for promotional offers and price discounts on products, with some switching to more premium segments within certain categories.”
Mauricio Flores Retail Customer Success Leader at GFK
“We are in a situation of deceleration in food prices throughout 2024, largely influenced by supermarkets through higher promotional activity. This has a positive impact on consumption, which is gradually moderating its decline and is moving closer to a potential recovery if this trend continues. On the other hand, the traditional channel, although it is lowering its price levels, still remains above the modern channel. One of the key factors in the recovery of consumption comes from a broader product portfolio per point of sale.”
Alejandro Rojas, Retail Customer Success Leader at NIQ