The “roller coaster” in the commodity exchange keeps the cost of basic raw materials high, while pressure on other operating costs, such as energy and transport, remains high.
Competition between domestic and multinational brands is intensifying, while at the same time private label products are gaining a larger share in the super markets.
Domestic companies are “sacrificing” profitability in order to support more aggressive promotions, at a time when multinational conglomerates are trying to shield their earnings momentum.
In the retail sector, the inflationary pressure on turnover is largely driven by the inelasticity of household spending. However, keeping the loss of sales volumes at predicted levels, shielding shares and maintaining sustainable operations remains a difficult task for supermarket chains.
Meanwhile, the market does not see signs of improvement in the agreements between producers, suppliers and retailers, which will be “locked” in August and will appear on the ‘shelf’ as of September.
The market is also concerned over the course of domestic consumption after the end of the tourist season.
