Blog: Dean BestIs UK demand for private label changing?

Dean Best | 11 May 2010

More fuel for the debate on whether we are seeing consumers return to premium has come from UK retail analysts at mysupermarket.co.uk.

Industry watchers at Kantar Worldpanel recently insisted that it had spotted a "sustained return" to premium products in the UK despite the fragile nature of the country's economy.

Kantar cited that return as a reason why Asda was falling behind rivals like Tesco and Sainsbury's.

Days later, there was an indication of the continued popularity of discount retailers in the UK with the GBP200m takeover of Poundland.

However, the folk at mysupermarket.co.uk have taken a more nuanced view. Shoppers are again starting to buy more upmarket food - but at levels far below that seen before the downturn.

"We did some quick research of our own and found that shoppers are spending 3% more on the premium own label ranges than they were a year ago, but it’s still 14% less than 2 years ago," says Jonny Steel from mysupermarket.co.uk. "This definitely suggests that the popularity of premium ranges is on the rise again, but still a long way to go until it reaches its pre-recession heights."

Similarly, Steel says that sales of "economy" own-label lines, including the Sainsbury's Basics range, had dropped over the last year by 12%.

"This once again suggests that consumers are starting to let go of these cheap ranges, but are still buying more than they were before the recession hit," Steel explains.


BLOG

US food agency hints at direction of travel with "policy roadmap"

It's light on specific details but a new "strategic policy roadmap" for 2018 from the US Food and Drug Administration should give manufacturers a sense of where the agency could be looking to act this...

BLOG

Vegan tourist tales

I sampled some of the products launched in the UK in the New Year, aimed at those seeking to eat more healthily or cut down on their meat consumption....

BLOG

"We're evolving" - flagship US lobby group insists change coming as more members quit

Hershey and Cargill are the latest US-based food majors to have decided to leave The Grocery Manufacturers Association - and the lobby group says it is looking to change to meet the "disruption" in th...



Forgot your password?