31 Million Brits Switch to Supermarket Brands
Released
on: August 4, 2009, 4:43 am
Author: uSwitch.com
Industry: Consumer
Services
As
food price increases start to slow down, it’s not just the
supermarkets that are busy battling the pricing war. New research
from uSwitch.com reveals that
31 million (73%) shoppers are taking matters into their own hands
by opting for supermarket own brand labels in a bid to save money
on the weekly shop. This figure has tripled since August 2008
when just a quarter (25%) of shoppers were ditching premium labels
to lighten the financial load of the weekly trolley dash.
Much
of this increase can be attributed to supermarkets expanding their
own brand products in a bid to stop consumers switching to cheaper
chains. This includes the launch of the Waitrose ‘Essentials’
own label range, Tesco’s ‘Discounter’ range
and Sainsbury’s ‘switch and save campaign’ which
calculates own brand savings. Not only has this activity secured
repeat visits from existing customers, according to the recent
TNS Worldpanel report it has also slowed the rapid growth of overseas
competitors such as Aldi, Iceland and Lidl over the past few months.
Overall,
this research has revealed that nine out of ten (90%) UK adults
now use recession-busting shopping strategies when they do the
weekly shop. Money off vouchers have also reached the top of the
shopping list with the number of frugal consumers’ regularly
using these has also shot up to 74%, compared with 26% last year.
In addition, a fifth of shoppers (20%) now compare prices online
before taking a trip down the aisles, this has more than tripled
from just 6% in August 2008.
When
it comes to shopping online 6.4 million consumers now claim to
avoid the hustle bustle of their local supermarket by carrying
out their weekly food shop online. Again, this has tripled from
just 5% of consumers in August 2008. In fact, this is becoming
so popular with consumers, industry commentators predict that
the value of online food sales could hit £8 billion by 2011.
These
recessionary cut backs could also have positive lifestyle implications
for many savvy shoppers as they revert to the good life. Almost
a fifth of consumers have now taken to growing their own fruit
and vegetables, up from just 8% in August 2008. This has created
a waiting list for allotments across the country amongst those
who do not have the option at home. Just this week, Tesco has
applied for planning permission to create allotments for rent
at its Dobbies Garden Centre - they also plan to sell allotment
starter kits.
As
a result of ‘pinching the pennies’ becoming very much
the new ‘splashing the cash’, figures suggest supermarkets
may turn out to be one of the few winners in the recession. For
example, Morrisons has just surprised the market with an unscheduled
trading update indicating full year profits would be £70
million ahead of expectations. Share prices in Sainsbury’s
and Tesco have also experienced a rise.
Rumina
Hassam, personal finance expert at uSwitch.com, says:
“In the face of uncertain economic forecasts, continued
volatility in the housing market, and worrying increases in national
unemployment, Brits are making savvy cutbacks to their fundamental
spending routine to beat the recession at its own game.
“The
number of Brits making basic changes to their weekly food shopping
patterns has increased dramatically since last year, as the effects
of the recession continue to amplify. However, despite the economic
outlook remaining uncertain, consumers may find they have the
last laugh – as the lessons learnt from the schooling in
savviness they are currently experiencing as a result of the recession
will remain vital, even long after the economy recovers.”
Rumina's 10 thrifty trolley
tips:
- Switch
to a credit card from a supermarket. You can earn extra loyalty
points and often get 0% on purchases in store for a period
of time.
- Tesco
credit card: Make purchases from a range of selected items
at Tesco Direct using your Tesco Credit Card, interest free,
for a fixed number of months. 5 points for every �4 you spend
at Tesco or Tesco.com and 1 point for every �4 you spend elsewhere.
- Sainsbury's
credit card: Earn 4 points per �1 spent when using card in
conjunction with Nectar card in Sainsbury's store, 2 points
per �1 when only using card. Earn 1 point per �5 spent when
making any other purchase. Enjoy 0% for the first 12 months
on Sainsbury's shopping.
- Asda
credit card: Quadruple points are earned for the first 3 months
and every December when you shop at Asda. Double points are
earned everywhere else you use your card for the first 3 months
and each and every time you shop at Asda. And you'll earn
single points every time you use your card outside of Asda.
Also a 5% discount at ASDA Living stores.
- Always
use your reward/loyalty
cards such as Tescos, which allow you to collect points
while you shop.
- Humble
pie never tasted so good - switch down a brand and you could
save 15% off a family shop over year, potentially saving �800.
- The
late bird gets the worm - switch to shopping at night and
you'll be much more likely to bag a bargain as supermarkets
make big reductions on items near their sell-by dates. Generally
these reductions start at 7pm.
- Don't
shop while hungry. Eat before you leave home so you
won't be as tempted to buy more than you need.
- Shop
with a list. Allow yourself to buy off-list items
only if they're unadvertised specials at prices too low to
pass up.
- Cook
more from scratch. Pre-packaged items save time,
but that convenience comes at a price.
For
more information please contact:
Tracy North, uSwitch.com 020 7802 2925 / tracynorth@uswitch.com
http://www.uswitch.com/
About
uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison
and switching service, helping consumers compare prices on gas,
electricity, water, heating cover, home telephone, broadband,
digital television, mobile phones, personal finance products and
car insurance.
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