BRC welcomes CMA report showing value of own-label products
Responding to today’s CMA report, “Price inflation and competition in food and grocery manufacturing and supply”, Andrew Opie, director of food & sustainability at the British Retail Consortium, said: “We welcome today’s CMA report, which confirms many of the BRC’s own findings about the grocery sector. The CMA found that own-label goods offer competitive prices for consumers, with margins falling from 4% in 2020 to less than 2% in 2022. While many branded manufacturers had increased their unit profitability during the cost of living crisis, savvy consumers have been trading down to supermarket own-label brands in order to get the best possible value. The increased availability of own-label products is just one way in which food retailers have supported their customers with the rising cost of living.”
“We acknowledge the CMA’s concerns on baby formula – a market dominated by two brands. The CMA notes that consumers could make significant savings by switching to cheaper brands or own-label products, all of which provide the necessary nutrition for a healthy baby.
“Retailers will continue to deliver excellent value for their customers. Whether it’s everyday low value, or genuine bargains through loyalty schemes discounts, retailers know they have to demonstrate clear value to get customers through their door. However, this continues to be challenged by rising costs, from hundreds of millions in additional business rates, to higher labour costs from the rising NLW. “