The boss of Aldi UK says shoppers are treating themselves to more expensive products as cost of living pressures start to ease. Customers are said to be “trading up” to premium own-label products including Wagyu steak, premium cheese, ready meals, and brioche buns.
It is a shift in behaviour from 2021, when soaring food prices saw a boom in cheaper supermarket own-label products as shoppers cut back and bought fewer brands to save money. On Monday, Aldi revealed a 16% increase in sales in 2023 and bumper profits, though the discounter has recently lost ground as its competitors fight back.
The supermarket announced it would open 23 new stores in the next 16 weeks as part of an £800m investment plan. Aldi’s premium own-label ranges is growing ahead of other products, which is a similar picture for the wider grocery market as well.
Premium own-label volumes were up by nearly 16% year-on-year, according to the latest monthly data from the retail research firm Kantar. That compares with a drop of 10% for “value” own-label items. Some of that increase may be down to consumers, many of who are still feeling pressure on budgets, choosing to eat in at home instead of dining out, as well as opting less often for bigger brands.
“It’s still tough out there for millions of families but inflationary pressures are easing for some,” said Aldi UK chief executive Giles Hurley. For others, it’ll be a decision not to use hospitality but to celebrate at home instead.”
With celebrating at home in mind, Aldi’s specially selected range will make up more than 50% of its overall Christmas offering for the first time.
Source: BBC
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