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Trade: Food VAT slash leads to 17pct rise in number of products sold until mid-June
The reduction in the VAT on food products to 9pct has led to a 17pct increase in the number of products sold in the first two weeks of June, according to a survey by a global performance management company, issued on Thursday.
Prices went down on average by 11pct in the categories monitored by Nielsen Romania, with retailers and producers having kept their promise to slash prices.
The results were immediate, in the sense that the products with the most significant price decreases sold the best. For coffee, for example, an average price reduction by 15pct of the products led to an increase in volumes by approximately 25pct compared to the same period of 2014 (June 1 to 14). Other categories that were very dynamic, according to the survey, were meat, cheese, soft drinks and snacks.
"We estimate that we will have many changes on the market. Will the consumers move to premium products, will they consume more coffee, meat and cheese or it is just an immediate effect of lower prices? How long will prices stay at this level and what will happen when they will start to rise?" wonder the authors of this survey, who have created also a new monitoring tool — Price Monitor — for the FMCG (fast-moving consumer goods) market.