BREAKINGVIEWS-Deflation will help big grocers gobble up minnows

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Aimee Donnellan

LONDON, Dec 29 (Reuters Breakingviews) - Supermarkets like Walmart and Tesco are expecting goods prices to finally fall. That will help larger chains to cut shoppers’ bills by putting pressure on suppliers such as Unilever. Smaller rivals may find it harder and end up losing customers, making them ripe for takeovers.

Full view will be published shortly.

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CONTEXT NEWS

Walmart is expecting deflation in 2024, the supermarket chain’s CEO Doug McMillon said on Nov. 17.

“We may see dry grocery and consumables start to deflate in the coming weeks and months,” McMillon added.

In July, Tesco said it expected suppliers to work with it to move the market from “inflation to deflation”.

(Editing by Francesco Guerrera and Oliver Taslic)

((For previous columns by the author, Reuters customers can click on DONNELLAN/
Aimee.Donnellan@thomsonreuters.com; Reuters Messaging: Aimee.Donnellan.thomsonreuters.com@reuters.net))

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