The ‘no name’ products are an antidote to the precision of supermarkets

The ‘no name’ products are an antidote to the precision of supermarkets

Of George Lampiris

Sales of fast-moving consumer goods in supermarkets (FMCGs) are inversely proportional to those of private label (PL) products. This is according to data from the supermarket market measurement company, IRI, which compares the first nine weeks of 2022, namely the period from January 1 to March 6, with the corresponding period of 2021. The specific data were presented in the context of the general assembly of ECR, the body that interconnects supermarkets with the supply-industrial enterprises of Greece.

Consumer preference for private label products

The growth trend of private label products, namely non-branded products – which are manufactured by the industry under the brand name of the respective supermarket chain – is mainly due to the increase in prices in stores due to the wider wave of accuracy resulting from both the problems in supply chain and inflationary trends, as well as since the war in Ukraine. For example, an extra virgin olive oil with a private label of 1 liter is priced at around 6.2 euros on the shelf, while a corresponding branded product reaches 7.2 euros per liter. So the trend of increasing sales on the private label is indicative of the fact that the consumer public is currently looking for cheaper solutions to fill its basket.

The increase in private label goods at + 9.7%

More specifically, according to IRI data, the increase in sales of private label products is recorded more vividly from the 3rd week of January until the third week of March, which was also the week of the three days of Net Monday. The overall increase in sales during the first nine weeks of the year for private label goods in supermarkets was 9.7%, while the broader category of fast-moving consumer goods including food, personal hygiene items and home care products, moved marginally down by -0.1% compared to the corresponding period of 2021. Also interesting is the fact that private label products increased their market share in the period from 1 January to 6 March at 15.9%, when in the corresponding period last year their share in the total sales of supermarkets was 14.9%.

Source: Capital