Sales of the cheapest own-label lines have slipped into decline, while premium own-label sales are on the rise, according to TNS data seen exclusively by The Grocer.
In the week it emerged that the growth of the discounters had ground to a halt over the latest 12-week period and Waitrose recorded the highest sales of any retailer at 14.8% TNS also found that the cheapest own-label products at all supermarkets declined 2.8% in the 12 weeks to 29 November. One year ago, growth of the same ranges hit a peak of 46.4%.
And while premium products were declining at 7.5% year-on-year, premium products are now growing at 2.6%, with retailers predicting this trend will accelerate as Christmas grocery shopping hits its busiest period.
Ed Garner, TNS communications director, said the latest figures from retailer shares and range-based analysis were evidence of a recovery in the economy. "This time last year, the discounter revolution was in full swing and Aldi had just recorded 25% growth," Garner recalled. But "premium ranges particularly Tesco Finest started growing long before the launch of this week's [widely covered] price war on 200 Finest items," he noted, while the hard discounters, comprising Aldi, Lidl and Netto, saw no year-on-year share growth.
Retailers predict a more optimistic mood will lift sales of premium products this Christmas, despite the Chancellor's gloomy pre-Budget report this week.
"Last year Finest took a bit of a hit because of the bank collapse, Woolies going bust, and everyone feeling spooked," said Lucy Neville-Rolfe, corporate and legal affairs director of Tesco. "What we have seen year-on-year is a strong recovery. You saw big swings from Finest to Value at that time, and you are now seeing some slight reversal of that.
"As far as our customers are concerned we think they are more confident," added Neville-Rolfe.
"You haven't got the same challenges as last year or the same effect of raging inflation, but we remain a very broad church and are selling to all different parts of the market."
Asda had also seen an upturn, confirmed a spokeswoman: "Customers are trading up. We won't be able to tell until the new year but we do believe, in general, people will want to splash out more this Christmas.
"Last year there was a media frenzy over the credit crunch and people were perhaps a little more cautious. There are still people watching the pennies and we've got products like the £1 Christmas tree to cater for them."
In the week it emerged that the growth of the discounters had ground to a halt over the latest 12-week period and Waitrose recorded the highest sales of any retailer at 14.8% TNS also found that the cheapest own-label products at all supermarkets declined 2.8% in the 12 weeks to 29 November. One year ago, growth of the same ranges hit a peak of 46.4%.
And while premium products were declining at 7.5% year-on-year, premium products are now growing at 2.6%, with retailers predicting this trend will accelerate as Christmas grocery shopping hits its busiest period.
Ed Garner, TNS communications director, said the latest figures from retailer shares and range-based analysis were evidence of a recovery in the economy. "This time last year, the discounter revolution was in full swing and Aldi had just recorded 25% growth," Garner recalled. But "premium ranges particularly Tesco Finest started growing long before the launch of this week's [widely covered] price war on 200 Finest items," he noted, while the hard discounters, comprising Aldi, Lidl and Netto, saw no year-on-year share growth.
Retailers predict a more optimistic mood will lift sales of premium products this Christmas, despite the Chancellor's gloomy pre-Budget report this week.
"Last year Finest took a bit of a hit because of the bank collapse, Woolies going bust, and everyone feeling spooked," said Lucy Neville-Rolfe, corporate and legal affairs director of Tesco. "What we have seen year-on-year is a strong recovery. You saw big swings from Finest to Value at that time, and you are now seeing some slight reversal of that.
"As far as our customers are concerned we think they are more confident," added Neville-Rolfe.
"You haven't got the same challenges as last year or the same effect of raging inflation, but we remain a very broad church and are selling to all different parts of the market."
Asda had also seen an upturn, confirmed a spokeswoman: "Customers are trading up. We won't be able to tell until the new year but we do believe, in general, people will want to splash out more this Christmas.
"Last year there was a media frenzy over the credit crunch and people were perhaps a little more cautious. There are still people watching the pennies and we've got products like the £1 Christmas tree to cater for them."
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