Brits will spend £1bn on supermarkets’ premium own-label products for the first time in December, Worldpanel has predicted.
Sales of these goods were worth £582m in October but Worldpanel, previously known as Kantar, believes this is likely to double as Christmas edges nearer.
“It’s important to remember that shoppers often look for great value and quality, not just the cheapest product,” said Fraser McKevitt, Worldpanel’s head of retail and consumer insight.
“At Christmas especially people want to treat themselves and throughout the cost-of-living crisis we’ve seen them turning to retailers’ premium own label lines to do that in a way that’s more affordable.”
It comes as grocery price inflation slowed to 4.7% in October as retailers ramped up promotions ahead of Christmas, Worldpanel said.
Take-home sales at the grocers grew by 3.2% over the four weeks to 2 November versus last year, with spending on deal up by 9.4%. By comparison, spending on full priced goods rose by just 1.8%.
Ocado continued to benefit from the popularity of online orders, hitting a record market share of 2.1% for the 12 weeks to 2 November. It came after the retailer notched up its highest rate of sales growth – 15.9% - in over four years.
“Online growth is primarily being driven by the already converted,” said McKevitt. “On average, households who use online grocery now buy three shops a month, making up a whopping 61% of their spending at the grocers.”
Tesco and Lidl made the biggest market share gains versus last year, both adding half a percentage point.
Asda and Co-op were the only grocers to suffer falling sales, down 3.9% and 1.4% respectively.
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