UK retailers have been increasing the prices of their own-label grocery ranges faster than those of branded goods, even as customers turn to such ranges, which are often marketed as “budget”, in the cost of living crisis.
So-called private label goods have risen in price by 16.3 per cent in the past 12 weeks, analysis by data group Circana revealed — ahead of branded goods increasing by 10 per cent. The gap has widened slightly on a four-week basis, with retailers’ private labels going up in price by 17 per cent, the report showed.
The findings come as a greater number of cash-strapped shoppers have turned to cheaper ranges to keep their grocery bills down. The appetite for own-brand products in chilled, fresh and ambient food had been particularly high amid the cost of living crisis, the report said, as well as for items such as laundry and hygiene items.
Sales of private label goods rose 46 per cent year on year, according to recent figures from data company Kantar.
“Retailers are clearly winning on many fronts. While not always the least expensive . . . private labels offer a range of benefits that meet their [needs] and can be trusted as much as national brands sitting on adjacent shelves,” said Ananda Roy, a senior vice-president at Circana.
Tesco, J Sainsbury, Asda, Co-op, Waitrose, Marks and Spencer, Lidl, Aldi and Ocado did not immediately respond to a request for comment.
Morrisons said that it had cut prices on a number of products this week that it made or prepared itself. “As a British foodmaker, we are on the front line of commodity prices — and we’ll look to pass on any easing to our customers quickly,” chief executive David Potts said.
Andrew Opie, director of food and sustainability at the British Retail Consortium, said: “With food production costs rising significantly over the last year owing to high energy costs, global food prices and labour shortages, we have seen a knock-on impact to prices on the shelves. As these costs begin to fall, we expect to see food price inflation falling away in the coming months.”
Source: Economy - ft.com
