The turnover for the second quarter of 2024 from consumer, technological and durable products is down -2.8%, a first in 2 years!

• 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   

Paris, August 29, 2024. 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.  

“Everything can be explained by the double phenomenon of inflation and deflation”, comments Vincent Cornu, Director Retail Services France NielsenIQ – GfK. “First element of explanation. The second quarter of 2024 faces a quarter of 2023 strongly boosted by inflation at the time. This reached its peak in April 2023 to stand at +16.4%. A second element of explanation, linked to the first, lies in the fact that Q2 2024 records the first deflation of the last two years. This was all it took to negatively impact the turnover of expenses for the second quarter of 2024 with a decrease of -2.8% in expenses in value. A first in 2 years”, adds Vincent Cornu.  

The NielsenIQ Barometer combines data from NielsenIQ and GfK. It provides a complete view of distribution turnover in France and expenses carried out in terms of consumer products (food, drinks, fresh produce and hygiene products) and technical and durable products (household appliances, audio-video, DIY-gardening, etc.). This cross-sectional, multi-channel overview, based on real sales data, is unique to date.  

PGC: the Q2 2023 inflation wall weighs on 2024 performance. 

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 decline is above all that of non-alcoholic drinks. These are down by -4.7% in CA, accounting for almost half (41%) of the total losses of consumer goods when they only represent 15% of expenses. Sensitive weather products par excellence, this poor performance echoes a particularly hot second quarter of 2023 when spring 2024 was marked by storms and mild temperatures according to Météo France readings. Added to the drop in drinks purchases is the Easter shift from April 15 to April 1, which deprives Q2 of sales of seasonal chocolates. Confectionery turnover shows a notable decrease of -9.0% in Q2 2024.  

Finally, the Descrozaille law applied since the first quarter of 2024 has considerably weighed on promotional sales, with a significant impact on certain product categories. For example, Baby Care collapsed to -11.0% in Q2 when it was stable in Q1 turnover (+0.1%). La Droguerie-Entretien presents Q2 2024 turnover at -5.1% and the radius DPH as a whole contributes to the overall reduction in FMCG turnover. 

Goods techniques & lasting: between hyper-dynamism and persistent declines. 

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%). The French remain on goods acquired during periods of confinement and are not yet renewing their equipment, particularly that related to teleworking.  

However, some markets performed well. The income generated by television sales was boosted by the football dynamics of Euro UEFA 2024 (+8% in Q2 2024). The same goes for audio headsets, with turnover growth of +7%. As for household appliances, the decline is less steep (-4.3%). Among star products, vacuum cleaner sales stay the course (+6% in turnover) and above all, the enthusiasm for Airfryers does not weaken: the turnover generated shows +161%, more than double compared to the same period last year. Personal care devices are also positive like personal care products. Dental care (+33%), Hair styling appliances (+18%) or even Shaving/Hair removal (+13%).   

For its part, the trend Do It Yourself initiated by the Covid-19 pandemic seems to be running out of steam. The French are reducing their spending in 2024 and the DIY-Gardening universe is absorbing the shock: it goes from growth of +5.6% in Q2 2023 to a decline of -9.0% in Q2 2024. The second half of 2024 thus confirms the difficulties of the Home Improvement market, affected by difficult weather. Spring rain limited sales of barbecues (-10% in turnover in Q2 2024), watering products (-26%) without yet relaunching purchases of garden products (fertilizers, phytosanitary products, etc.) at -2%. 

The Construction & Renovation universe remains hard hit by the drop in construction starts and financing costs: sales of windows and shutters collapsed to -43%, illustrating this trend. 

For more information visit NIQ Retail Spend Barometer (nielseniq.com)  

About the NIQ Retail Spend Barometer   

The NIQ Retail Spend Barometer combines FMCG and Tech & Durables sales data collected in “outings of checkout” by NielsenIQ and GfK in France. It measures actual sales and allows you to study changes in trends over the last periods studied. The FMCG scope includes food, fresh products, drugstore-hygiene-beauty products (DPH) or even petfood, and the sector Tech&Durables includes technical goods, household appliances, DIY and gardening. The data comes from distributor panels of NielsenIQ and GfK, which together measure the sales of more than 350,000 distribution partners across the globe. 

For more information, visit:  NIQ Retail Spend Barometer (nielseniq.com) 

^{About NielsenIQ}

NIQ (NielsenIQ) is the global leader in consumer intelligence, providing the most comprehensive understanding of consumer purchasing behavior and revealing new growth opportunities. In 2023, NIQ joined forces with GfK, bringing together two industry leaders with unrivaled global reach. With a holistic view of distribution and the most comprehensive consumer insights – delivered by advanced analytics on cutting-edge platforms – NIQ offers the most complete vision – the Full View.  

NIQ is a portfolio company of Advent International, operating in over 100 markets, covering over 90% of the world’s population. For more information, visit nielseniq.com 

^{About GfK | a NielsenIQ company} 

GfK has earned the trust of customers around the world by solving critical challenges in their decision-making process. In 2023, GfK merged with NielsenIQ, bringing together the two industry leaders with unparalleled international reach. Together, we fuel our clients’ growth by providing a comprehensive understanding of their consumers’ purchasing behavior and the dynamics impacting their markets, brands and media trends. Thanks to a holistic vision of distribution channels and the most complete consumer insights – enriched with advanced analyzes and recommendations via our digital platforms – NielsenIQ and GfK offer the Full View™.