New research from MCA Insight and HIM suggests that the decline in convenience baskets containing own label items is continuing, with shoppers preferring to buy “quality” branded grocery products.
The recently launched HIM UK Convenience Report shows that, in 2019, 82% of baskets contained no own label products. This means that just 18% of shoppers bought an own label product, down from 22% last year.
When segmented by store type, the data highlights symbol stores and independents as catalysts for the low level of penetration for own label products. On average, 13% of baskets in symbol stores and 14% in independents contain own label products. In comparison, managed c-stores and super c-stores have a much higher penetration, 34% and 45% respectively.
The report highlights that brands are more important than ever in the convenience sector, with 55% of shoppers stating that they like buying branded grocery products, rather than own label. A greater desire for quality of products is a catalyst for this, as brands step in as the custodians of quality and give shoppers the reassurance of value and consistency.
Blonnie Walsh, Senior Insight Manager at HIM & MCA Insight, said: “In the current economic environment, where squeezed disposable income and waste reduction are hot topics, it comes as a surprise to see the dominance of brands across the channel. With only 18% of baskets containing own label products, shoppers are not necessarily looking to trade down within convenience.
“Drinks categories are particularly brand led, with energy drinks, carbonated soft drinks, hot drinks to go and lager making up four of the top five brand-led categories. It is important to understand that this is an overall average and does not mean there is no room for own label within convenience. Managed c-stores and super c-stores are much more balanced in terms of own label vs. brands, but independents and symbol groups are some way behind. Retailers, suppliers and wholesalers need to understand the shopper dynamics behind own label in order to identify the categories with that offer the best opportunity.”
NAM Implications:
- Surely a reflection of quality…
- …combined with consumer need for more than it says on the tin…
- …a combination-formula that spells a way forward for brands…
- …for those that can deliver.
