In the week that Tesco launched a new range of 350 ‘tertiary brand’ products, sales volumes slumped by 2.3%, exclusive research from Nielsen shows. However, sales of budget own-label goods in the fmcg category rose by almost 25% and standard own-label also grew faster than branded over the last three months.
Sales of standard own-label goods increased by 8.6% over the period, above the 7.4% sales growth in the category as a whole and the 7.8% for branded products. However, budget own-label goods were clear winners, notching up sales growth of almost a quarter (23%), albeit from a lower base.
However, consumers are turning away from premium own-label goods, with sales up by just 1.7% over the period.
The data comes the week after Tesco launched its new Discounter imprint and Asda reduced the cost of more than 5,000 products as supermarkets look to cash in on bargain-hunting shoppers.