Tuesday, 13 December 2016

Tesco continues to outpace rivals (Kantar)

However, behind the headlines:

Where at: Great to see Tesco on the way back, but digging beneath the surface, growth is in premium private label, echoing similar trends in other mults. Add the rapid growth of Aldi and Lidl, at the expense of brands, and a more worrying trend becomes more obvious…

Where headed: In other words, unless branded suppliers find ways into private label and into the discounters via ‘safe’ SKUs

Effect on you: Brands are under threat, or at the very least, the brand premium is being reduced

Action: Time for branded suppliers to decide whether keeping the factory going, or maintaining diminishing brand equity is more important

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