Own-brand sales boost for Co-ops

Recession trends provide a tonic for Movement

August 18 2009

Co-op stores up and down the country are reporting a big increase in value-for-money Co-operative brand sales as consumers seek to reduce their expenditure during the recession.

The Co-operative Group has announced strong sales in its own-brand range with year-on-year sales to the end of June 2009 up by 10.1 per cent — with particularly strong sales at both ends of the pricing spectrum, as well as continued growth in ethical and Fairtrade products.

Tim Hurrell, Managing Director, The Co-operative Food, told the News: “Sales of our premium Truly Irresistible range are performing well, with year-on-year sales up by as much 47 per cent in meat and fish; 45 per cent in ready meals and 33 per cent in beverages, reflecting consumer confidence in the quality of The Co-operative brand, as people choose to shop locally and dine at home rather than eat out.”

He said top-selling Truly Irresistible products included Elmwood British Free Range Chicken, Freedom Food British Wiltshire Cured Ham and own-brand British Cox’s Apple Juice. Mr Hurrell said sales of the Group’s value range, which was relaunched and extended under The Co-operative Simply Value label in March, were up 73 per cent year on year.

Two of the UK’s biggest independent societies, Midcounties and East of England, also reported increased sales of Co-op own-brand products.

East of England’s Group General Manager — Trading, Roger Grosvenor, said: “We have noticed a positive trend in the sale of own brand products across the society’s food stores and these are recording a volume increase of around 16 per cent. But sales of major branded products are still strong.”

Meanwhile Midcounties’ Group General Manager for Food Retail, Andy Cresswell, said more customers were opting for own-label products, which was partly due to the improving quality of Co-operative brand produce.

The trend towards own-brand labels is being replicated in all the main supermarkets in Britain, according to a survey published recently by the price comparison website uSwitch.com.

The survey of 9,931 uSwitch consumer opinion panel members in April concluded that almost three out of four of the UK’s adult population now opt for supermarket own labels, a figure that has tripled from just 25 per cent since last August.

uSwitch said more shoppers than ever before — 20 per cent — are now comparing prices online before doing their weekly shop, while a whopping 74 per cent are regularly using money off coupons in an effort to reduce their bills.

The survey says that, in addition to the Co-operative Group, many other retailers have expanded their range of own brand products in an attempt to prevent consumers switching to cheaper chains.

This tactic has apparently paid dividends as, according to a recent TNS Worldpanel report, the rapid growth of overseas competitors such as Aldi, Iceland and Lidl has slowed over the past few months.