Amid recent stories of disputes between retailers and suppliers over price rises, Aldi has pointed to new data on the supermarket sector that highlights the price gap between branded groceries and own-label alternatives.
According to an analysis of Kantar data, consumers in Britain could be spending a premium of £15.1bn a year for branded items in the Big 4 supermarkets compared to Aldi’s own-label products. That’s £45 a month, or £542 a year, that the average household could save by switching to the discounter’s own products.
Aldi also highlighted separate data that suggests there is a significant gap in the price of Big 4 own-label items compared to discounter own-label lines. A recent analysis of 33 grocery items by The Grocer magazine showed that swapping Big 4 own-label products to Aldi own brands could save shoppers around £324 a year.
The findings come as households face the biggest decline in spending power for a generation. Last month, Kantar reported that the impact of food price inflation means that the average household grocery bill will be £380 higher this year.
“People are facing difficult choices about how they spend their money and are changing the way they shop to stretch budgets as far as possible,” said Giles Hurley, CEO of Aldi UK and Ireland.
“Shoppers are switching from brands to own-label products because they know they are often the same or better in terms of quality and taste. It costs a lot of money to market a mainstream brand, but you don’t have to pay for this when you buy a better value own-label alternative.”
Consumer watchdog Which? confirmed today that Aldi was the UK’s cheapest supermarket in June on a basket of 52 grocery items. The Big 4 average price was £11.92 – or 15% – more expensive than Aldi.
NAM Implications:
- ‘Proof of the pudding’ in the growth of the discounters.
- Meanwhile, brands (consumer & retail) need to revisit relative competitive appeal…
- …and deliver more than it says on the tin…
- ….always!
- All else is detail.
