Lower-priced own-brand items make up 'half' of UK spending

UK spending on retailer own-label lines was £393 million higher in the past four weeks.

According to figures published by Kantar, own-brand items now make up 51 per cent of the market.

“In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer best value, in particular by expanding their own-label ranges,” said Fraser McKevitt, head of retail and consumer insight at Kantar. “Their efforts seem to be well received by consumers with sales of the very cheapest value own-label products up by 33 per cent this period versus a year ago and nearly one in four baskets containing one of these lines.”

The research also found that take-home grocery sales increased by 3.8 per cent in the three months to 4 September.

The figures show that this is the third month in a row that the grocery industry’s sales have grown after a year in decline.

The numbers come as grocery price inflation hit a record 12.4 per cent in the past month, meaning the average annual grocery bill will jump from £4,610 to £5,181 – an extra £571 a year.

Prices for milk, butter, and dog food are increasingly rapidly at 31 per cent, 25 per cent, and 29 per cent respectively.

Aldi becomes the UK's fourth largest supermarket

Consumers are responding to rising prices by shopping at budget retailers, with Aldi's sales increasing by 18.7 per cent over the past three months. This has pushed its market share up to 9.3 per cent, overtaking Morrisons as Britain's fourth largest supermarket.

Meanwhile, for the fourth month in a row Lidl was the fastest growing grocer and recorded its strongest sales performance since October 2014.

“Back at the start of the 2010s, Tesco, Sainsbury’s, Asda and Morrisons together accounted for over three quarters of the sector but that traditional big four is no more," continued McKevitt. "The discounters have seen dramatic sales increases in recent months, bringing more and more customers through their doors."

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