Own-label sales move from ‘supermarkets to discounters’

By James Ridler

- Last updated on GMT

Own-label food sales have switched from ‘supermarkets to discounters’
Own-label food sales have switched from ‘supermarkets to discounters’

Related tags: Aldi, Marketing, Uk.

Own-label food manufacturers will continue to see their major multiple supermarket customers lose sales to discount retailers, according to a new report from market analysts IRI.

The report, Private-label in Western Economies​ – released on June 22 – analysed own-label sales trends and price promotions across Eruope, the US and Australia.

In the report – which included food and drink own-label products – IRI claimed that own-label value share was down year-on-year by 0.4 value share points in UK supermarkets,

It also claimed the value share of own-label in the total market – including discounters – was up year-on-year by 0.4 value share points.

Loss of own-label sales

The trend highlighted at a potential loss of own-label sales to discount retailers, with more and more shoppers moving to Aldi and Lidl, said the report.

IRI director of strategic insight Tim Eales said: “We’ve seen an over-abundance of products on the shelves across many of the countries, not just the UK.

“There is simply too much choice for the average consumer today and ​[own-label] is often the victim of cuts to the number of products that appear on store shelves.

Eales also warned retailers to study the impact of their decisions before reducing assortment and range – both own-label and national brands.

The report also claimed the price gap between own-label and national brands was closing and price could be less of an incentive for UK consumers choosing supermarket’s own-label products to save them money.

‘Level of uncertainty’

While the UK has a very healthy ​[own-label] value share of the total fast-moving goods market, there seems to be a level of uncertainty over whether it will maintain this over the coming year,” ​said Eales.

He also said that a combination of shoppers with more money and retailers reducing their ranges and promotional support would be a “determinate​” to own-label products.

Meanwhile, last year Genius Foods’s founder Lucinda Bruce­-Gardyne told FoodManufacture.co.ukmanufacturing own­-label products​ alongside its branded free-­from bakery items had helped the firm build stronger relationships with retailers.

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