It’s goodbye yellow pack road as shoppers splash out

IT’S a sure sign the good economic news is starting to feed through to our shopping baskets – as new research has revealed people are ditching cheaper own-labels in favour of branded products.

For the first time in four years, branded goods have had better sales growth than own-label products, analysts revealed.

Kantar Worldpanel director David Berry said the findings – for the 12-week period ending on January 28, 2018 – are a sign people are feeling better off and more confident financially. He said: ‘The recovery of branded sales began in late 2017 and has continued apace in the new year. Sales of brands are up 4% year-on-year as shoppers parted with an additional €49million on their favourites during the past 12 weeks.

‘This is the first time in four years that brands have posted stronger sales growth than their own-label counterparts, with alcohol, baked goods, frozen food and toiletries performing best.’

Consumers’ Association of Ireland chief Dermott Jewell said ‘it’s very likely there’s more disposable income’, while the indication that shoppers are loosening the purse strings was backed by credit card firm Visa, which found consumer spending was up 5.3% year-on-year in January.

Philip Konopik, of Visa Ireland, said: ‘January was another extremely positive month for consumer spending, representing the strongest year-on-year growth for a year and a half.

‘This is reflective of the continuing fall in unemployment and buoyant consumer confidence in the economy, with shoppers demonstrating real resilience by continuing to increase their spending into the new year.’