After ten months of double-digit price growth, the British public is continuing to turn to own label lines to help manage spending, according to research by Kantar Worldpanel.
Grocery price inflation rose by 17.3% in the four weeks to 16 April 2023, down marginally on the 17.5% recorded in the previous four weeks according to the company’s latest data. Take home grocery sales grew by 8.1% over the month to mid-April.
Own-label lines, which are often cheaper, are still growing at 13.5% this period suggesting shoppers are finding better value for money on these shelves, Kantar said.
“The very cheapest value own label lines are doing even better, with sales soaring by 46% versus a year ago. These products now find their way into nearly one in five baskets. Branded sales are going up but more slowly at 4.4%,” Kantar said.
Amid rising prices, both Aldi and Lidl have seen market shares rise steadily over the latest 12-week period and sit at 10.1% and 7.6%, respectively. Aldi says that an amazing two-thirds of all British supermarket goers are doing at least part of the weekly shop at the discount chain. Aldi has added some 1.1 million new customers in the first quarter of 2023, a boost of £300m year over year.
“Almost 19 million shoppers are taking advantage of our brand-like quality and unbeatable prices,” says Giles Hurley, Aldi UK CEO. “People are facing difficult choices about how they spend their money and are changing the way they shop. Shoppers are switching from big stores with big prices to counter the effects of inflation and keep more of their money in their pockets. Independent analysis shows we are consistently the UK’s cheapest supermarket, and our commitment to our customers is that will always be the case.”
Kantar data back that up, showing that British consumers have been extremely wary of cost in this tough economy and are making the switch to the two chains.
“The discounters have been big beneficiaries of this, with Aldi going past a 10% market share for the first time this month,” Kamtar said. “That’s up from 5% eight years ago in 2015, so we can see just how competitive the market can be. Retailers are really battling it out to show value to shoppers, but if consumers feel their offer isn’t quite right then they’ll go elsewhere.”
Kantar believes grocery inflation will come down soon, but that’s because the company will start to measure it against the high rates seen last year.
“It’s important to remember, of course, that falling grocery inflation doesn’t mean lower prices, it just means prices aren’t increasing as quickly,” the company said.