Are the better off hurting? If latest quarterly sales statistics from Kantar are to be believed, then the answer's Yes. Sales of own-label premium brands like Tesco's "Finest" and Sainsbury's "Taste the Difference" have fallen sharply.

Even Waitrose sales growth has slowed. And as for Aldi and Lidl?


Taste the downturn

The success of the discounters, Aldi and Lidl, says Edward Garner from Kantar Worldpanel, "is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead. Once again, they both achieve all-time record shares of 2.9% and remarkable growth of 26.1% for Aldi and 11.5% for Lidl."


Market share growth remains steady for Asda and Sainsbury's, but there are market share dips for Tesco and Morrisons. Tesco's market share is down to 30.7% from 31.1%; Morrisons slipped to 11.9% from 12.1%.

Ordinary is okay

Sainsbury's market share rose 0.1% to 16.5% while Asda's remains solid, so far, at 17.3%.
Waitrose is still growing at over double the rate of the whole market but this growth has fallen back to 4.8% from 7.5% last quarter, suggesting there are signs the premium sector is slowing.

This is reinforced says Garner by the continuing decline of the premium sector. Premium own-label products have been in continuous growth since 2008 he says, "despite often being more expensive than their brand equivalent. Now however, they are declining by 6% year-on-year, while economy own labels such as Tesco's Everyday Value are growing at 13%."

Meanwhile the sodden conditions of the last three months hasn't helped retailers: the Office for National Statistics claims retail sales climbed just 0.1% in June, well below forecasts of 0.6%.



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