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Are Retailers Dropping Own Label Lines in Favour of Name Brands?

Tesco_Price_Drop

Following the revamp of its ‘Finest’ range, Tesco has reportedly dropped several of its Own Label grocery products in favour of name brands, including reintroducing products it had eliminated from its shelves.

According to the Mail on Sunday, one such move included the removal of its own brand New York Soup Company range in the last two weeks. The report added that products from the New Covent Garden Soup Company are again being stocked by Tesco, after having been dropped in October 2012.

The move suggests these Own Label venture brands are failing to capture the shoppers imagination in the same way name brands are able to.

The Brand View team has looked to understand more about how Own Label range decisions are making an impact across Tesco’s business and asks is this trend being mirrored by other retailers?

Is this part of a bigger move toward name brands by Tesco?

BVW_Tesco_Own_Label_Graph1_AW_01-11-20132

The amount of branded products being listed by Tesco has increased significantly year-on-year by 36 per cent.

Own Label new listings are also in growth; however a significant amount of this increase will be due to the recent revamp of Tesco’s ‘Finest’ range.

Is this trend occurring across other retailers?

BVW_Tesco_Own_Label_Graph2_AW_01-11-20131
BVW_Tesco_Own_Label_Graph3_AW_01-11-20131

With Sainsbury’s looking to take Tesco to court over misrepresentation of its price promise message on Own Label, it is interesting to see that Sainsbury’s is continuing its Own Label drive but with this balanced out by an equal number of Branded new listings.

This analysis is conducted on Chilled, Frozen and Ambient items. To review trends on other categories such as Electricals, Household or Health & Beauty, contact the Brand View account team.

If you would like to setup an alert on your category to see any further tablet listings or price changes, contact your Brand View account team today.


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