Bleak outlook for grocery spending<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
Indonesia has experienced a bleak outlook in grocery spending
\nsince the economic crisis, with no sign of a strengthening in the
\nshort term, says an AC Nielsen report made available on Tuesday.<\/p>\n
The report shows the grocery sales index of the first quarter
\nat 102 percent, weakening from 109 percent the previous quarter.<\/p>\n
The index measures retail sales volume of fast-moving consumer
\ngoods in shops -- traditional and modern -- in urban and rural
\nareas throughout Indonesia, covering around 80 product categories
\nlike soap, washing detergent, shampoo, noodles, milk, biscuits
\nand soft drinks, in thousands of brands and pack sizes.<\/p>\n
The index is one of the tools that can reflect the progress of
\nspending power and living standards among Indonesian consumers,
\nas the products covered represent the everyday shopping basket of
\nmost households.<\/p>\n
The results of the volume survey are indexed to precrisis
\n(mid-1997) levels.<\/p>\n
Therefore, the current 102 percent index means that the
\ngrocery volume purchased during the first quarter is 2 percent
\nhigher than that of mid-1997.<\/p>\n
The report also provides a quarterly index from March 2001,
\npresenting a fluctuating index that ranges from 101 percent to
\n109 percent. It shows an annual trend in which spending slumps in
\nthe first quarter then steadily climbs in the following quarters,
\npeaking in the fourth, when people spend more money on food
\nproducts for the celebration of Christmas, New Year and Idul
\nFitri, when it has occurred in that quarter.<\/p>\n
However, from March 2001 to March 2003, the index never rose
\nabove 109 percent, despite the fact that the population grew by
\nabout 1.7 percent per year, according to AC Nielsen.<\/p>\n
The survey shows that grocery prices have almost tripled as
\ncompared to their precrisis level.<\/p>\n
The index excludes cigarette spending because "the share of
\ncigarettes sales is too large, so it would affect the index
\ngreatly," said AC Nielsen director for client services Teguh
\nYunanto.<\/p>\n
"For example, we once found that cigarette sales accounted for
\n40 percent of a shop's total sales," he added.<\/p>\n
Another AC Nielsen report, titled Asia Retail and Shopper
\nTrends 2003 shows that in Indonesia traditional trade remained
\ndominant, amounting to 74.6 percent of the total trade share in
\n2002.<\/p>\n
However, according to AC Nielsen's retail services director
\nYongky S. Susilo, the trade share of modern stores, such as
\nhypermarkets, supermarkets and minimarkets has grown healthily by
\n12 percent per year, as they have implemented a better marketing
\nstrategy than traditional markets.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bleak-outlook-for-grocery-spending-1447893297",
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"sponsor": "Okusi Associates",
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