Caritas markets flooded due to inflation

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The first quarter of this year was the best-selling quarter of all time in Swiss Caritas markets. Sales increased by almost 40 percent compared to the previous year. The number of customers has also increased to this extent.

For Thomas Künzler (62), market manager of Caritas, this is no reason to be happy. It’s clear for him: “The system has failed.” Because in Caritas markets, people with a small budget can buy food and other everyday products for less. To do this, they must apply for a card. It is designed for people living on a subsistence level, receiving social assistance or supplementary assistance.

More customers than ever before

Currently, 110,000 people in Switzerland have such a card. “We have a lot of new applications in all directions,” says Künzler. In other words, more and more people are no longer able to make a living.

The reasons for this are very diverse. First of all, inflation plays an important role. In March, inflation was 2.9 percent. This can be very severe, especially for poor people.

Already last year Caritas markets had more customers due to inflation. “But we didn’t expect a big increase this year,” says Künzler. Inflation has really made itself felt this year. Health insurance premiums rose. And electricity costs are also higher this year.

Cheapest products work best

Because of this, even Caritas had to raise prices a bit. But people don’t spend more money on it anymore. “They’re just buying less,” says Künzler. That’s why the cheapest products work best. “60cm chocolate is now bought for significantly more than 80cm chocolate.”

Künzler complains that prices for cheaper staples in the retail trade have risen sharply – by an average of 45 percent. Caritas compared the prices of discounters such as Aldi and Lidl to those of two years ago. The rise in the price of oil is particularly severe: “The cost of a cheap vegetable oil is CHF 2.60 in 2021. 4.50 francs now,” says Künzler.

Food partially subsidized

In Caritas markets, basic foods such as milk, pasta, rice, flour and sugar are subsidized. So they can be offered cheaper than they actually are. Everything is funded by donations.

Fruits and berries are again specifically subsidized, otherwise poorer people practically only reach for carbohydrates. Caritas sells 50 percent more fruit than the previous year. But now he has to ask himself how he can pay the subsidy for it. Caritas tries to have other products in the cheapest way.

Many refugees from Ukraine also shop at the Caritas market. “First they got a card right away. Now they have to apply for these, but they actually get them with a Ukrainian passport,” explains Künzler.

Source :Blick