Independent retailers have an opportunity to increase own-label sales as the average annual grocery bill is expected to increase by £643 to £5,265, according to the latest data from Kantar.
In the analyst’s latest figures for the 12 weeks to 2 October, 2022, Kantar said grocery inflation stood at a record high of 13.9%. It added that the cost-of-living crisis would see the average basket increase by £3.04 to £24.93.
However, the firm’s head of retail and consumer insight Fraser McKevitt said this would create an opportunity for boosted own-label sales. According to the company’s data, own-label sales increased by 8.1% in October, while branded sales fell by 0.7% in the same period.
He added: “The cost-of-living crisis is still hitting people hard at the checkouts and this latest data will make tough reading for many.
“Of course, consumers are looking for ways to manage budgets and to avoid paying more for their shopping. We’re generally reluctant to change what we eat, so this is more about sticking to the food we know and love while hunting for cheaper alternatives like supermarkets’ own label goods.
“We aren’t seeing dramatic evidence of diets changing. For example, while frozen veg sales have gone up slightly, there hasn’t been a big switch away from fresh products, which are still worth ten times more.”
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