NIQ Retail Spend Barometer
France

• The second quarter of 2024 is marked by a drop in expenses: -2.8% of turnover. 
• More than 2/3 of the drop in spending is linked to Technical  & Durable Goods (T&D), down -7.2%. Consumer products (PGC) show a very contained decline at -1.1%, a first in 1 year  
• Inflation, deflation, bad weather, impletmnetation of the Descrozaille law are notably responsible for disruptions in in-store traffic and certain reductions in French spending on FMCG and T&D   

According to the NielsenIQ (NIQ) Retail Spend Barometer of NielsenIQ (NIQ), French consumer spending in PGC and T&D products reached a turnover of 57.6 billion euros in the second quarter of 2024 (Q2). A decrease in turnover of -2.8% compared to 2023, a first in two years.  

The decrease in French spending on consumer products noted by NielsenIQ in the second quarter of 2024 has its source in the history of the second quarter of 2023. The price on the label at the time experienced an unprecedented increase and sales of consumer goods recorded also their strongest growth in turnover (+10.9%). Since then, the dynamic has logically attenuated, becoming negative during the same period Q2 2024: -1.1%.  

This downturn was mainly due to a 4.7% drop in sales of non-alcoholic beverages. These highly weather-sensitive products also suffered from a historical effect, as the spring of 2024 was marked by storms and mild temperatures. The shift of Easter to April 1st also deprived Q2 of chocolate sales: confectionery sales fell by -9.0%.   

Another impact: the Descrozaille law came into force, and weighed considerably on promotional sales. For example, Baby Care sales plummeted by -11.0%, while Droguerie-Entretien sales fell by -5.1%.

The slowdown in sales of technical and durable goods continues in the second quarter of 2024, especially on the High-Tech and Home Equipment side (-12.1%). 

However, some markets did well. Television sales were boosted by Euro UEFA 2024 (+8% in sales). In household appliances, the star products continued to be vacuum cleaners (+6%) and above all Airfryers: sales were up 161%!   

On the other hand, the DIY-Gardening universe is taking the brunt of the shock: it went from +5.6% growth in Q2 2023 to a -9.0% decline in Q2 2024, affected by a historical effect linked to the pandemic and delicate weather conditions. Rain in the spring limited sales of barbecues (-10%) and watering products (-26%), without boosting purchases of garden products (fertilizers, phytosanitary products, etc.) to -2%.

“The decline in spending can be explained by the dual phenomenon of inflation and deflation, with Q2 2023 history boosted by the fact that inflation reached its peak in April (+16.4%). At the same time, the market was impacted by calendar effects such as poor weather, the first effects of the Descrozaille law, and the postponement of Easter to April 1, disrupting some in-store traffic.” 

Vincent Cornu, Director Retail Services France NielsenIQ – GfK

2023