Following last week’s edition, there have been a number of questions about Discounter and Private Label price rises.
How have absolute prices risen and what is the impact on volume share changes this year?
Increase in absolute prices paid is often higher for Private Label products and in Discounters compared to their competition
Discounter and PL prices are not only increasing more in relative but often also in absolute terms than their competition. Although smaller pack size (more expensive per litre/gam), variant and product choice impact absolute prices, PL and discount shoppers often face a higher cost spike than their peers. But consumers are more likely to watch their actual spend rather than the increase.
Discounter volume shares are rising slightly less than their value shares
Discounter shares have resumed their long term upward trend. A key factor is the influence of stores opened since 2019. In addition, prices paid have risen faster than the average and this is seen in a lower relative growth in volume compared with value share.
Private Label volume shares rising slightly less than value shares
After a period of Private Label share stability, growth has returned in 2022. Share growth in Discounters (with high PL share) is a key influence. In addition, PL price has risen faster than for brands and so there is lower relative growth in volume compared with value share.