Premium own labels in decline

Sales of supermarket premium lines such as Tesco Finest and Sainsbury’s Taste the Difference fell 6 per cent year on year during the three months to 8 July, according to the latest grocery figures. Premium lines have been in consistent growth since 2008.

Waitrose, which has also performed strongly throughout the downturn, has seen its market share growth fall back to 4.8% from 7.5% in the last quarter.

Budget ranges such as Tesco Everyday value and Morrisons M Savers, the other sub-sector that was deemed recession proof, continue to grow at 13 per cent year on year.

Discounters Aldi and Lidl continue to forge ahead reporting record shares and growth.

Growth in the grocery market fell to 2.1 per cent in the three months to 8 July, compared to 4.1 per cent growth in the same period a year ago.

Sainsbury’s and Asda have continued to report slight market share growth while Tesco and Morrisons experienced a dip.

Grocery price inflation has also fallen back to 3.8 per cent.

Edward Garner, director at Kantar Worldpanel, says: “The success of the discounters, Aldi and Lidl, is a clear example of shoppers watching their purses, with both retailers continuing to surge ahead. Although Waitrose is still growing at over double the rate of the whole market, this growth has fallen back to 4.8% from 7.5% last period − suggesting there are signs that the premium sector is beginning to slow.”