Discount retailer trend 
is coming to an end

Shoppers abandoned discount retailers and budget brands and returned to premium offerings in the first quarter of 2010, according to Sarah Mitson, global account director at Kantar Worldpanel.

Speaking at the Zenith International 2010 Soft Drinks Conference in London last month, Mitson said: "The past quarter marked a reversal of 2009, with growth in premium own-label and premium branded formats, such as Waitrose, decline in growth in the discount format and decline or flatlining in budget own-label. Own-label is no longer growing faster than branded."

Sales figures for the main supermarket and discount formats from January 1 to March 31 this year showed some sales had shifted from cut-price stores such as Asda to Tesco, Morrisons and Waitrose.

The trend showed "discounters such as Aldi and Lidl had not managed to convert new visitors into loyalists", said Mitson. "They are not getting so many new visitors through the door and are not getting so many repeat visitors." This was "a fantastic opportunity for brand owners to continue to innovate". she said

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