Ocado Retail has revealed that sales of its ‘Own Range’ have increased by 12% this year, with the products now making up more than one in 10 items in shoppers’ baskets.
Amid increased demand from cash-strapped consumers, the online grocer has been expanding its own-label offering, adding more than 100 new items in 2024. By the end of the year, there will be more than 740 Ocado Own Range items available, with plans for “hundreds” of new lines next year.
The retailer pointed to research among more than 2,000 consumers undertaken with Savanta that revealed growing public demand for own-label produce. 89% of shoppers consider it important that their supermarket stocks a wide range of value products, with dairy produce (34%), meat and fish (28%) and tinned goods (22%) emerging as the top products customers are choosing to purchase from own brands in every shop.
When purchasing from a supermarket’s own-label category, half (50%) stated that quality was very important to them. Three in 10 (31%) subsequently said that the quality of own-label products has improved, with seven in 10 (72%) stating that they will continue to buy own-label goods regardless of any changes to the broader economic climate.
NAM Implications:
- The ultimate test of a successful business model is to successfully move from selling national brands…
- …to a mix of brand & own-label.
- The only issue is how far the mix can be stretched in terms of brand/own-label balance.
- i.e. pulling power of the brand to access the own label…
- (Keeping in mind that the growth of Retail Media will require a significant number of brands to generate to generate sufficient first-party data)
