Shoppers snap up cheaper food as caution mounts

Supermarket shoppers snapped up millions extra in cheaper own-label goods over the past month in a sign of increasing consumer caution over household budgets, industry figures showed on Tuesday.

Research firm Nielsen’s latest data for the four weeks to August 10 found customers put an extra £85 million of own-label products in their shopping baskets compared to a year ago, with a 7% rise in frozen foods and a 6% increase in canned goods.

Nielsen’s UK head of insight Mike Watkins said shoppers were drawn to the “lower price points” amid “increasing caution” over spending. Sales of branded goods also suffered in comparison with last year’s hot summer and World Cup, when stores slashed prices.

The virtual washout this year compared with 2018’s “barbecue summer” has left supermarkets struggling although total sales crawled 1% higher over the four-week period. The big four — Asda, Tesco, Sainsbury’s and Morrisons — lost market share while the discounters made hay.

Lidl and Aldi saw sales growth of 12.1% and 9.5%.

Figures from rival data firm Kantar also reported difficult trading for the grocers with even the UK’s hottest ever day at the end of July failing to kickstart sales.

But data from both firms held cheer for Sainsbury’s after its promotional drive made it the best performer among the big four for the first time since November 2017.

The firm is attempting to bounce back following the collapse of its Asda merger earlier this year.