Premium own label ranges are set to record their highest ever sales figures at the major retailers as shoppers push the boat out to treat their families this Christmas.
Shoppers are spending 13 per cent more on these lines than they did last year, according to grocery market share figures from Kantar Worldpanel for the 12 weeks to 4 December 2016. This is against a backdrop of continued slow growth for supermarkets overall, where year-on-year sales increased by just 0.7 per cent.
Fraser McKevitt, head of retail and consumer insight at Kantar, explained: “Top-tier private label finds its way into 12 per cent of shopping trips, with 88 per cent of consumers now buying from these lines.
“In the past 12 weeks, 6.3 per cent of own label purchases were from premium lines such as Tesco Finest and Sainsbury’s Taste the Difference, well ahead of the 5.7 per cent recorded last year. We’ve seen particularly impressive performances from Morrisons’ The Best, which saw sales increase by 35 per cent, and Asda Extra Special which grew by 15 per cent.
“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.”
When it comes to the hot topic of post-Brexit retail price inflation, the grocery research charity said that shoppers are yet to feel the pinch. A typical basket of everyday groceries is still 0.1 per cent cheaper than at this time last year.
Some categories are beginning to see prices increase, with fresh fish prices up 5.3 per cent year-on-year, chilled ready meals up 2.3 per cent and beer up 2.1 per cent, but in fresh produce only loose bananas have risen in price, going up from 68p to 72p a kilo at Asda, Morrisons, Lidl and Aldi.
“Prices are still falling overall despite shoppers now spending less on promoted items than they did this time last year,” said McKevitt.
Aldi was the only retailer to record double-digit sales growth over the past 12 weeks, with its premium Extra Special brand helping the discounter to increase sales by 10 per cent year-on-year. As a result, Aldi’s share of the grocery market has increased by 0.6 percentage points to 6.2 per cent.
The next fastest-growing retailer was Iceland, with an 8.6 per ent sales uplift contributing to a 0.2 percentage point increase which brings the grocer’s share of the market to 2.2 per cent. Other retailers growing sales over the past 12 weeks include Lidl, Co-op and Waitrose.
At Tesco volumes sales are growing faster than value sales, particularly in the meat and fresh produce categories. While at Asda sales fell by 4.7 per cent – a marginally slower rate than in recent months.
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