Shoppers turn to own-label products as inflation bites: Nielsen IQ

Britons are increasingly choosing own-label products to help counter surging inflation, says a new research today (5).

According to a new research by Nielsen IQ, sales of branded grocery products fell by 5.1 percent in the four weeks to March 26, while sales of own-label, or private-label, products created for chain stores were down 1.9 percent.

The share of sales for own-label products rose from 52.4 percent to 53.2 percent compared to a year ago, it said.

"As we leave behind the pandemic, it's clear that shoppers are re-evaluating what they spend," said Mike Watkins, NielsenIQ UK head of retailer and business insight.

"Whilst some of the changes in grocery spend will be due to consumers simply having a different basket mix compared with last year, our data also shows that consumers are now increasingly shopping for private-label products as part of their coping strategy."

Sales of private-label products in the ambient or packaged grocery category increased by 3.3 percent; a significant change in a category where brands dominate, with 61 percent share of total sales, it said.

UK inflation has hit a 30-year high of 6.2 percent in February and is heading for 9 percent later this year, according to the government's budget watchdog, which predicted living standards in 2022 would fall by the most since at least the 1950s.

Overall grocery spending fell 4.1 percent year-on-year in the period, the steepest decline so far recorded in 2022, says NielsenIQ.

However, the period was the final comparison against extensive lockdown measures, indicating a potential return to growth post Easter and into the spring.

The strongest performing retailers were M&S and German discounters Lidl and Aldi. The three were the only retailers to gain market share, says the research report.