EconomyWith 3x2 promotions and own brands, the rise in...

With 3×2 promotions and own brands, the rise in prices is faced

(Expansión) – Without a doubt, you and I have already been victims of the promotions that self-service companies are promoting so fervently this summer season, and I say victims, although perhaps the truth is that we were saved by this strategy that has put our reach the most consumed products in our day to day.

And it is with this escalation of prices that the vast majority of housewives or those responsible for home purchases live, we are suffering with our budget. Now, at the end of grocery shopping, it is common to hear the words “I didn’t have enough for everything!” or how expensive everything is!

We must recognize that, although inflation in July is officially at levels of 8%, and is the highest in the last 20 years, if we review the average rise it is much higher, at least that is how we see it with products that in January were They were located in a price and now they are up to 30% higher.

For example, the noodles for soups with increases of 30%; in the bakery or where you buy, the traditional shells, ears or kisses observe adjustments above 20% to 30%; the same with vegetable oil, which went from levels of 30 pesos to levels above 50 pesos, depending on the brand.

Not to mention agricultural products such as potatoes, onions, avocados, tomatoes or those that are not in our basic basket, such as pastries, soft drinks, in which some presentations have increased more than 10% in the last 12 months.

That is why companies like Walmart, Soriana and Chedraui paid more attention to the volume sales strategy and went all-in on 3 x 2 in this season they call summer. Preliminary results indicate that the consumer has accepted this promotion.

At least that’s how we saw it in the reports corresponding to the 2nd. Quarter of 2022 (2T22), where the results of the companies were in double digits and they themselves highlighted these strategies, in addition to the fact that this has been maintained with the ANTAD sales data for July.

Even Walmart stands out, whose main strategy is “always low prices”. While in previous years it stayed away from these promotions, this year it launched “summerdays”, in which it offers products in volume promotions.

Added to these campaigns are those that were already maintained with low prices and those promoting the own brand. With this they also offer discounts of up to 20% on products, strategies with which they have managed to capture the pocket of a consumer who has been strongly affected by the increase in prices.

Despite the fact that these mechanisms have shown strength in consumption, inflation is taking its toll in all sectors in general, but more so in the lower-income segment; Let us remember that, according to the population’s income-expenditure data, the low-income segments of the population C-, D+, D- and E spend between 30% and 50% of their income on food and basic needs, while that segment A, B and C allocates between 15% and 25%.

However, if the increase in prices continues, the effect is that families rearrange their income and begin to stop buying or spending on luxury goods such as clothing and entertainment, which in the end would translate into a greater slowdown in the economy.

This is not good news, but unfortunately, if inflation is not controlled in the short term, the positive results we observed in the first half of the year will not be repeated when it ends. The scenario, then, marks caution in our pockets and in the stations.

Editor’s note: Marisol Huerta Mondragón is a senior analyst at BX+, she has worked at institutions such as Grupo Financiero Banorte and Actinver. Professor of the subjects of Economy and Finance in the Faculty of Accounting and Administration and Faculty of Sciences of the UNAM. Follow her on and/or on . The opinions published in this column belong exclusively to the author and do not represent the position of Bx+.

Go from a traditional CV to a digital and comprehensive one

The reality is that a person's CV on paper does not accurately reflect whether that person is suitable for a job, says Guillermo Elizondo.

Inequality as a pending subject

The latent inequalities around the world are presented as one of the debts that we have as a human species, if we aspire to create a future of justice and authentic peace.

ESG and the FOMO effect. The challenge of communicating to the new generations

When thinking about ESG as one of the central pillars in the communication strategy, it becomes essential to carry out a deeper analysis of what it implies, points out Luis Ruiz.

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.

#LaEstampa | Blows to democracy in Mexico and the US

It is evident that there is much to improve in Mexican democracy. But the solution is not the sinister dismantling of the INE.