UK retailers are raising the prices of their own-label ranges faster than the brands

UK retailers have raised the prices of their own-label grocery ranges faster than those of branded products, even as customers turn to such ranges, which are often marketed as ‘cheap’, amid the cost-of-living crisis .

So-called private label products have risen in price by 16.3% in the past 12 weeks, analysis by data group Circana has revealed, ahead of branded products’ 10% increase. The gap widened slightly on a four-week basis, with retailers’ private labels rising in price by 17%, the report showed.

The results come as more cash-strapped shoppers have turned to cheaper ranges to keep their grocery bills down. Appetite for own-brand products in chilled, fresh and room-temperature foods had been particularly high during the cost-of-living crisis, the report said, as well as for items such as linens and hygiene items.

Sales of private label products increased 46% year over year, according to recent data from data firm Kantar.

“Retailers are clearly winning on many fronts. Although not always the least expensive. . . private labels offer a number of benefits that suit their needs [needs] and can be trusted just as much as the national brands sitting on adjacent shelves,” said Ananda Roy, senior vice president of Circana.

Tesco, J Sainsbury, Asda, Co-op, Waitrose, Marks and Spencer, Lidl, Aldi and Ocado did not immediately respond to a request for comment.

Morrisons said it cut prices on a number of products this week that it produced or prepared itself. “As a UK food manufacturer, we are at the forefront of raw material prices and will look to pass any slack on to our customers quickly,” said chief executive David Potts.

Andrew Opie, director of food and sustainability at the British Retail Consortium, said: “With food production costs rising significantly over the last year due to high energy costs, global food prices and labor shortages, “We’ve seen a knock-on impact on on-shelf prices. As these costs start to come down, we expect to see food price inflation abate in the coming months.”