Premium own-label sales rise 13%

By Matt Atherton contact

- Last updated on GMT

Premium own-label sales revenue increased 13% (Flickr/Tesco PLC)
Premium own-label sales revenue increased 13% (Flickr/Tesco PLC)

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Premium own-label food and drink sales revenue increased 13% in the 12 weeks to December 4, compared with the same period last year, Kantar Worldpanel has revealed.

Almost 90% of shoppers buy “top-tier”​ own-label products – including Tesco Finest, Sainsbury’s Taste the Difference and Morrisons’ The Best – according to Kantar’s latest grocery share figures. Premium own-label sales accounted for 6.3% of total own-label sales, the market analyst revealed – 0.6% more than the same period last year.

Kantar Worldpanel head of retail and consumer insight Fraser McKevitt said: “We’ve seen particularly impressive performances from Morrisons’ The Best, which saw sales increase by 35%, and Asda Extra Special, which grew by 15%.

‘Highest ever sales’

“Over Christmas, it’s likely that premium lines will record their highest ever sales figures as even more shoppers trade up to treat their loved ones.”

Food and drink prices were 0.1% cheaper than 2015, the report also revealed, despite price fears sparked by hikes from some manufacturers, including Walkers and Birds Eye​.

“Despite widespread anticipation of higher prices, shoppers are yet to feel the pinch of rising inflation, with a typical basket of everyday groceries 0.1% cheaper than this time last year,”​ McKevitt said.

Shoppers spent 3.1% less on offers and promotions compared with last year, the Kantar report showed.

‘Simplify shopping’

Promotional activity has dipped across all five of the biggest retailers, reflecting ongoing efforts to simplify shopping and offer more of an everyday low pricing model, which relies far less heavily on promotions.”

Discounter Aldi increased its sales by 10% in the 12 weeks to December 4, boosted by its premium Extra Special brand. The sales boost meant Aldi increased its grocery market share by 0.6%, to 6.2%. Supermarket Asda’s grocery market share dropped by 0.9%, the biggest drop from any of the UK’s eight biggest retailers.

Meanwhile, Brexit-related price rises could turn consumers to own-label ranges​, predicted Shore Capital analyst Clive Black last month. He said discount stores could see the benefit of price increases from food and drink manufacturers.

Kantar Worldpanel grocery share figures – at a glance

  • Premium own-label revenue up 13%
  • Average basket price down 0.1%
  • Aldi gained 0.6% of grocery market share

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