EconomyFinancialMexicans buy in bulk to protect their pockets from...

Mexicans buy in bulk to protect their pockets from inflation

“I used to buy my bicarbonate by the kilo at Sam’s for 80 pesos and now I buy it at a store that sells bulk goods near my house and it costs me 32 pesos per kilo,” says Perla Martínez, a head of a family who has sought to save her spending and has opted for this way of buying supplies for the home, based on the increase in some products and food since last December

Buying in bulk is a trend that is on the rise. Cuauhtémoc Rivera, president of the National Alliance of Small Merchants (Anpec), details that bulk purchases were already present in some products such as grains, such as beans, rice, sugar, but as a result of the pandemic, this practice It has been extended to cleaning and personal care items. “There is an emerging consumption, where people adjust their purchases to inflation, incomes have not recovered and prices have not stopped rising,” he says.

Martínez supports the representative of small businesses, such as grocery stores, adding that he also buys floor cleaner, chlorine, dish soap and shampoo in bulk, which cost between 5 and 10 pesos less compared to products that have the brand signature.

Although choosing the products and the places to buy them was not immediate. The head of the family says that she had to try among distributors to prevent the savings from being translated into a poor quality product.

But the increase in purchases does not represent an exponential rise for sellers either. Norma Liga, who sells cleaning and personal care products in a market north of Mexico City, shares that there are more people who buy from her business, but with the almost 30% increase in some of the products she buys, the profit is not that high when it comes to accounting for the profit of your business.

“Many women, who are the ones who are most in charge of shopping, come for liters of chlorine, clean floors or `suavitel’, which is what is sold the most, even creolin, which is used to disinfect, and for as long as a month, they also take shampoo, conditioner, or body lotion,” she explains.

In another stall in the same market, seeds and dried chilies are sold. The owner, Luz Ramírez, declares that people have always bought dried chiles, mole, and granola at her store, and since the pandemic, people have bought more almonds, walnuts, blueberries, and chia.

And this trend is added to other products, which are purchased in small stores, instead of branded products in self-service stores.

“Now I buy in the store and I save about 30 pesos, because I even changed the cheese. Before I used to buy Christmas Eve manchego, at 80 pesos 400 grams, and now it’s panela cheese, 76 per half kilo. The ham came out at 132 pesos per half kilo, and before I used to buy Zwan or San Rafael, 79 pesos for 250 grams,” says Liliana Corona.

An avocado and three eggs

But shopping by the gram is not the only option. According to Cuauhtémoc Rivera, another phenomenon that has been seen since last December is the purchase by the piece, among fruits, vegetables or proteins that have had a price increase due to the inflation that has stalked the world since the end of last year.

Alejandra López, who runs a vegetable stand in a tianguis that runs through various towns in the Cuauhtémoc mayor’s office during the week, has noticed a change in purchases since inflation. “People buy only what they are going to use to eat or cook, even if they have to restock later,” he says: “Instead of taking the kilo, they buy three tomatoes, an onion, an avocado or three eggs,” he says.

Although for some people, buying products in local stores, this does not mean that they do not feel the effect of rising prices. Tonatiuh Torres, a graphic designer from Iztapalapa, says that even in the Central de Abastos, price increases are already being perceived.

“The rise in inflation is very noticeable in some things, for example, last week the chayotes were very expensive, the avocado ‘just’ did not go down and so on with various things. but even so, everything is cheaper than in the flea market in the neighborhood, let alone in the supermarket”, he declares.

Avocado is one of the fruits that has raised its price the most. The kilo in markets exceeds 100 pesos, when last year it was common to buy it for up to 50 pesos. Only the first fortnight of May rose 13.38% at a fortnightly rate.

And although it is one of the most characteristic fruits of Mexican gastronomy, the avocado is not considered within the 24 products that the Mexican government’s anti-inflation plan considers, so its price is not expected to reach a ceiling, much less let it reduce. “The avocado is already a memory in the memory of many Mexicans,” says Cuauhtémoc Rivera, from Anpec.

Will El Buen Fin be able to stop inflation?

If it wants to be successful, the sales season of El Buen Fin 2022 must have very attractive offers and discounts to make Mexicans consume and beat inflation.

Get rid of inflation! Gentera achieves triple-digit profits

Despite the good dynamism of its portfolio, the institution will show caution in 2023 due to the "January slope" and the possible defaults of its clients.

Arca Continental enters the distribution of Don Julio tequila

The Coca-Cola bottler will now test distillate distribution, while reinforcing Topo Chico's presence in the ready-to-drink category.

Inflation in Mexico picks up 8.5% in the first half of October

The rise in prices more than doubles Banxico's goal and indicates that the entity will continue to make credit more expensive at its next monetary policy meeting.

Inflation does not spare even beer; has its biggest rise in 12 years

The chela registered an increase of 11.2% during September of this year, the highest variation in 151 months; the most expensive 355-milliliter bottle was found in Cuernavaca Morelos.