According to a recent IRI study, private label sales continue to grow even in mature European markets.
In 2013, private label accounts for 36.7% of retail sales and 47.1% of volume sales in Europe, with varying levels of penetration across markets.
The UK remains the flagship market, with private label sales approaching 55% of retail turnover, while Spain is showing the strongest year-on-year value growth at 1.4%.
France is the only market where the value of private label sales declined slightly in 2013 (-0.6%), in part due to the poor performance of economy private label ranges which a number of retailers are now talking of discontinuing. This decline is also due to strong price promotions between A brands in France, resulting in a decrease in price differentials between national brands and standard private label brands. This leaves private label ranges less appealing to price conscious consumers.
Europe IRI noted a premiumisation of private label ranges and a move away from a pure price strategy, although on average private label products remain 30% cheaper than competing A Brands.
Source: Noreen Lanigan, Paris Office Manager, Bord Bia – Irish Food Board, 22/11/2013
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