With shoppers increasingly trying to make savings in their weekly budgets, own brand labels are growing at a rate of +2.3% year-on-year
Jun 13 2012
Private label on the rise: The SuperValu Own Brand range was launched in March of this year and is proving successful for the retailer
New figures released from Kantar Worldpanel in Ireland at the end of May show that although private label is thriving, grocery sales have declined by 0.2%. Own brand labels are growing at 2.3% year-on-year as shoppers try to make savings.
David Berry, commercial director at Kantar Worldpanel, explains: “Retailers’ own brands continue to appeal to shoppers in the face of depressed household incomes, growing at 2.3% year on year, as shoppers focus on saving rather than spending. Sales of branded goods have dropped over the past year and now account for 53% of the market, down from 54.1% last year. In contrast, we are seeing own label products thriving for retailers like Tesco, SuperValu, Aldi and Lidl.
“Among the retailers this month, Aldi, Tesco, SuperValu and Lidl, have all grown faster than the market, placing increasing pressure on their competitors. Aldi’s growth of 20.1% has led to a record share for the retailer this month, breaking through the 5% mark to 5.2% and further demonstrating the importance of price to consumers.”
Aldi and Tesco have both posted record shares this month of 5.2% and 28.4% respectively. SuperValu continues to perform well following the launch of its SuperValu range. As a result, its market share has increased by 0.4 points to 19.8% following a tough trading period this time last year.