Factsheets

Own Brands - Background

Major UK retailers sell approximately 40% of their packaged grocery sales under their own brand. Development of retailer brands in the 1990’s was given added impetus by the budget ranges provided to compete with the hard discounters entering the UK market.
 

Retailer brands have developed over the years to provide various ranges under one umbrella with ‘sub brands’ aimed at different shopper needs and segments. Most retailers now offer a budget range, a premium luxury range, a healthy eating range and a children’s range of products.

Importance of Retailer brands to shoppers.

Although the retailers’ own brand is not the most important reason, in terms of product offering, for shopping at a particular store it does feature quite strongly.

Shopper Reasons for Choice of Main Supermarket

Own Brand ranges are important to almost one fifth of shoppers

 Source: IGD Consumer Research 2003

Reasons for purchasing retailer brands

The perception that retailer brands provide better value through lower prices is still a key driver for purchase.  Interestingly almost a quarter of shoppers surveyed indicated that their supermarket had a good reputation for own brand products - clearly some retailers have built up a particularly strong reputation in own brand. 

Source: IGD Consumer Research 2003

Sub brands purchased

The main retailer brand ranges purchased are the traditional value and standard range lines followed by the newer premium and healthy eating ranges.
 

Whilst ranges are targeted at different consumer needs this does not mean that the shopper fits into one segmentation only. Shoppers will also generally be buying for more than one end consumer. Different needs will therefore be catered for through purchasing across a number of sub brands.
 

The expectations and perceptions shoppers will have of different ranges will also be dependant on what product categories they are purchasing.
 

For ‘Value’ ranges the top categories purchased are: