Own-brand sales soar
SUPERMARKETS’ sales of ownlabel products are growing at double the rate of branded versions due to the cost-of-living crisis, according to market research group NIQ.
This year has seen a 14.1 per cent increase in the sale of own-label goods compared with 7.1 per cent for branded items.
NIQ said that own-label products now account for 63.3 per cent of all the packaged consumer goods, compared with 62.1 per cent last year.
Despite the squeeze on finances, NIQ said that the Coronation helped boost takings at supermarkets.
The week leading up to the event saw a 17.6 per cent lift in sales, which helped sales for the four weeks to May 20 rise by 12.3 per cent. NIQ said that the biggest sales growth was seen in bakery and confectionary, with both up 17.9 per cent, followed by dairy, which rose 16.5 per cent.
Beers, wines and spirits rose by 0.7 per cent.
Mike Watkins, NIQ head of retailer and business insight, said: “Inflation has been a significant drag on shopper spend this year, incremental sales are reliant on a short-term boost from well-activated events, rather than promotional activity.
“This will have helped many prioritise spending for the Coronation.”
He added that with better weather on the way, supermarket sales are likely to rise, especially as “many shoppers are still looking for a special treat now and again, despite the challenges of inflation”.
Elsewhere, the cost-of-living crisis has helped discount chain B&M grow its sales every month since June 2022. Its sales for the year to the end of March rose four per cent to £4.6billion.
Alejandro Russo, chief executive, said: “Demand for essential food and FMCG [packaged or fast moving consumer goods] items has remained high, with many customers seeking out leading branded goods at the lowest possible price.”
Meanwhile, Waitrose has apologised to customers after IT issues left shelves bare of some fresh products for days and deliveries disrupted.
Branches across the country saw shelves empty of bakery, fruit and other fresh items, with essentials not being delivered due to a slow-running system update.
The upmarket grocer offered vouchers to compensate some customers, with receipts reading: “We’re sorry if we did not have everything you were looking for today.”
Waitrose said the root cause of the system update delay had been resolved and the availability of fresh products was improving.
A spokesman said: “We’ve fixed the cause of the issue, with extra deliveries already out with stores.”