Discount Brand Britain
Monday, November 24th, 2008It seems that attitudes towards discount brands are changing rapidly here in Britain. Shoppers are swallowing their pride and embracing the likes of Lidl and Aldi in their droves. The other mid-market and luxury brands are fighting back of course, but it’s going to be tough. M&S, one of the worst hit, recently held an out-of-character 20% Discount Day and continue to run the popular ‘Dinner for 2 for £10’, which is great for a weekend dining treat, but less so for your weekly shop.
Tesco have decided to take the discounters on at their own game with Tesco Discount Brands. Tesco knows that middle-income shoppers are turned off by the Tesco Value brand and have made up new brands such as ‘Oak Lane’, ‘Daisy’ and ‘Trattoria Verdi’ to sell cheaper Tesco own brand products. It’s too early to tell whether this will pay off, but one worry is it could damage the Tesco brand. And a return to the old days of stack it high and sell it cheap would be shame for a brand that has transformed itself in recent years. Perhaps just a good old drop in prices would have been easier?
Sainsbury’s, who only a couple of years ago were struggling to keep up with Tesco, has been one of the other surprise winners. Seen by many as a better value Waitrose, it has seen its customer base stay loyal whilst acquiring those who wouldn’t be seen dead in the rest of them. And with Morrison’s new fresher brand look in place just in time, it too is in prime position to benefit from the downturn.
Anyone for a Aldi Snackrite Crisp?
