FINANCIAL CAPITAL TAKEN
Although later than other countries, Panama is already feeling the negative effects of financial and economic storm sweeping global markets, and the proof is that in June 2009, the consumption of Panamanians in major supermarket chains in the country grew only 10.5%, down growth of 16.9% in the same period in 2008.
A Market Intelligence study on the evolution of consumption in Panama, called the Basket and prepared for signature Capitalpor Dichter & Neira, indicates that the sharp decline of 6.4% in sales of supermarkets is the result of slowdown experienced by the Panamanian economy.
In fact, April has been the best month so far this year, reflecting a sales increase of 21.2%, 8 percentage points higher than the 13.2% growth reported in the same time last year . But the trend since then has been downward, as sales in May grew 17.7% and 10.5% in June.
The Basket Dichter & Neira, composed of all sales made by the major supermarket chains in the country, indicates that some high-demand items showing signs of slowing.
is the case of telephone (11.1%), automotive care products (9.3%), pharmacy (9.2%), food and care for the baby (8.6%), care pets (8.1), non-alcoholic beverages (5.7%), spirits and cigarettes (3.7%), hardware (1.7%) and processed foods (3.0%), and the line of greatest concern , accounting for more than a third of sales of major supermarket chains in Panama.
Meanwhile, the items that contributed most to sales growth were processed cheeses, meats and sausages in bulk, poultry and industrial bakery, indicating that consumers are prioritizing the purchase of commodities (see figure: Contribution to growth category.)
Given this reality, Leopoldo Neira, chief executive of Dichter & Neira, said there is still no clear sign of recession in the level of consumption, but acknowledged that it is preferable to pay attention to this phenomenon, indicating that some items are being hard hit by the global economic crisis.
explains that consumption has been increasing relative to last year, but not with the same strength. "What we've begun to see is how economic growth has begun to weaken, which implies a slight slowdown in consumer spending in supermarkets Panama, which is a great barometer of the national economy," said Neira.
The monthly index of economic activity in 2009 shows growth figures close to 3.5%, while last year the average was 9.0% and 10.5% in 2007. Supermarkets are preparing
Major supermarket chains the country have begun to prepare to face the slowdown in consumption levels of Panamanians. The manager of Marketing and Corporate Affairs Group Rey, Roberto Maduro, recently acknowledged that the consumer would suffer a reduction in growth rate, so that the supermarket chain already has a plan to combat homelessness, which is to provide the best products and services at more competitive prices and provide customers the best value for money.
For his part, Mario Martinelli, chairman of the Super 99 supermarket chain said one of the strategies they have implemented, is to lower the prices to be more competitive and to save customers the products they consume.
Pedro Acosta, president of the Consumers Union of the Republic of Panama (Uncurepa), states that do not receive a positive trend in consumption in the short term because the production, import and marketing of food and other staples is subject to the will of intermediaries and price agreements are recorded at various levels of the market, as consumer prices have not fallen nor will they.
To boost consumer spending in Panama, said Acosta urged the establishment of true food sovereignty policies, produced what the country consumes and what the people need, because otherwise "we will have a negative consumption trends in the coming months."
Market Intelligence Study, prepared by Dichter & Neira, organized trade shows that are preparing their best weapons to try to revive the trends in consumption of Panamanians, since the months to come are usually the lowest Sales during the year. Conclusions
market
• There will be less brand loyalty and greater inclination to the price. This means that mid-priced brands and under will be most favored.
• The consumer before leaving a mark, find sizes smaller because the smaller sizes to better accommodate the capacity to deliver.
• The war for the trade preferences were more pronounced in all trade channels, but will be in stores which offer better prices to consumers.
Source: Dichter & Neira
