Private label report: Shoppers ‘relentlessly’ comparing prices to keep spending in check
AUSSIE shoppers are lapping up private labels, and a report has revealed how much you can save by choosing the cheaper options.
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AUSTRALIAN shoppers have become “super savers” who always compare prices before choosing brands — a mindset that’s boosting private label sales.
A new report reveals private labels are on average 44 per cent cheaper than big-name brands for packaged groceries; 58 per cent cheaper for petrol and convenience outlet items; 51 per cent cheaper for alcohol; and 16 per cent cheaper for over-the-counter healthcare.
Bakery goods, fresh milk, cheese, biscuits, pet food and laundry and cleaning products are the top sellers.
The IRI research found most consumers feel financially worse off than a year ago, and three-quarters now always check costs when buying.
“Shoppers are relentlessly price-comparing in order to keep their spending in check,” IRI channel insights manager Daniel Bone said.
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“With wage growth at a record low, and household debt surging to record highs, the private label price advantage will place downward market share pressure on iconic national brands for the foreseeable future.”
Just one-in-three quizzed shoppers agreed that “brand name is important to them.”
The Rise and Evolution of Private Label in Australia report also shows:
SHOPPERS shelled out $17.7 billion on private labels in the past year, up 3.9 per cent.
PRIVATE labels make up almost one-fifth of all packaged goods spending.
DRINKERS are turning more to private label craft beer, vodka, and sparkling, red wine, but backing off other types of beer and cider.
PREMIUM store-branded private label sales are falling as focus switches to mid-range offerings.
A BACKLASH over cheap milk last year wiped $79 million from sales, but purchases are now recovering.
IRI tracks retail sales data, and also monitors the shopping behaviour of 10,000 households.
Mum-of-two Belinda Vaughan regularly buys private label milk, bread, and baking ingredients such as flour and sugar. She sticks to major brands for beauty products and washing powder.
“If you can cut your shopping bill down that’s more money you can use in other areas,” Mrs Vaughan said.
The report notes private labels have spread beyond traditional offers such as supermarket-branded Smart Buy, Finest, Essentials and Gold to “phantom brands”.
These included “copycats” like GoldenVale and Maxx Blonde, and less easily identified private labels such as Chevron and Hill Farm.
“Having been exposed to a broadening and improving range of private labels, shoppers tend to see them just as another viable branded option, rather than a trade-down,” Mr Bone said.
TOP SELLERS
Bakery, Chilled milk, Chilled cheese, Biscuits, Pet food,
Laundry/cleaning, Eggs, White wine, Frozen meals, Ice cream,
Confectionery, Chilled spreads,
Frozen vegetables, Toilet rolls, Kitchenware.
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