By Laura McGuire
Shoppers are continuing to switch to supermarket ketchup, milk and cereal own-brands to cut down on spending amidst the cost of living crisis.
Volume sales in store branded products surged 63.3 per cent in the fast moving consumer goods (FMCG) category during May, figures by consumer intelligence company NIQ show.
Food prices have surged since the ongoing war in Ukraine, which impacted imports across Europe creating a hike in costs.
As the UK navigates this change, store branded goods have had a growth rate of 14.4 per cent during the year, with consumers forced to seek out cheaper options to deal with rising living costs.
It comes as data from NIQ also shows that UK supermarkets experienced a 12.3 per cent uplift till sales as shoppers were forced to spend more during the month due to inflation.
For major supermarket business, the demand from consumers to keep prices low has become competitive – with major players such as Tesco and Sainsbury’s routinely cutting prices to keep up with value rivals Aldi and Lidl.
Despite this grocers have come under fire from government figures for their pricing strategies, with Downing Street reportedly looking to introduce a voluntary price cap on basic food items to help with high living costs.
The move, has faced backlash from retailers, with Asda chair Stuart Rose warning officials of the “unintended consequences” that may back fire if they attempt to get involved in the market.
Speaking yesterday, Rose said: “You can’t interfere in the markets, the markets will control themselves. We are a very efficient industry, not just in Asda, across the retail piece. We have kept the price of electronics and clothing and food in real terms down to levels that are unprecedented in terms of our ability to be efficient.”
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