Premium own label products, which have been in continuous growth since 2008, are now declining by 6% year-on-year, grocery share figures from Kantar Worldpanel for the 12 weeks ending 8 July 2012 reveal.
At the same time, economy own labels are in strong growth with Tesco’s Everyday Value brand growing at 13%, for example.
Further evidence of shoppers tightening their purse strings is revealed in the continued gains made by discounters Aldi and Lidl.
In the latest period, both retailers have achieved all-time record shares of 2.9% with Aldi’s sales growing by 26.1% year-on-year and Lidl’s up 11.5%.
Edward Garner, director at Kantar Worldpanel, said: “We are seeing big cutbacks by consumers as they continue to respond to this current period of austerity. The success of the discounters, Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead.”
Among the big four supermarkets, fortunes continue unchanged with market share growth for Asda and Sainsbury’s and share dips for Tesco and Morrisons.
Waitrose, meanwhile, with sales up by 4.8% in the latest period, continues to grow at over double the rate of the whole market (+2.1%). According to the retailer, it is still seeing robust growth and reports sales for the week ending 7 July 2012 were 6.1% higher than last year.
By food sector, frozen food continues to be the top-performing category, as consumers look to reduce waste. This trend has helped Iceland to continue the upward surge it has enjoyed since 2005, said Kantar.