A loaf of branded, white sliced bread costs about £1.20 at Tesco. The retailer’s own-label equivalent costs 70p, or 42% less. It is not surprising that Tesco’s chief executive, Ken Murphy, recently flagged bread as one of the categories where customers are starting to trade down to cheaper alternatives.
That trend is already being felt by the companies that make own-label products – and they expect it to accelerate.
Read the full article on the Financial Times website (PayWall)
NAM Implications:
- The issue is not only switching to own label…
- But building consumer loyalty to the retailer version of the brand…
- …that may be even more difficult to reverse when economies ‘improve’.
- i.e. Key that brands work harder to help the consumer-shopper to buy the brand premium…
- (and possibly use Retail Media to drive the message?)
