Bernstein: Tesco 'Leading Channel Shift' In UK Private Label
Analysts Bernstein Research have said that Tesco is currently the 'cheapest supermarket for own-label' prices, with its recent Farm Brands launch pushing the UK retailer ahead of the likes of Asda, Morrisons and other rivals.
In a briefing note, Tesco The Disruptor: Now The Cheapest Supermarket For Own Label & Leading The Channel Shift, Bernstein said that Tesco has 'disrupted the price hierarchy' with a private-label offer that is among the most competitive in the market.
'Tesco is making the boldest actions and is now the cheapest supermarket for own-label prices. Far from being threatened by the actions of Aldi and Asda, it is taking the fight to them with the launch of its Farm Brands,' the report reads.
Calling Farm Brands a 'decisive move', Bernstein described it as 'a whole new own-label range, 17% cheaper than the standard own-label range, and, for the first time, price-competitive with Aldi across a wide range of own-label products'.
'Our taste tests, the merchandising and the provenance all point to a quality product; Tesco is no longer competing with the discounters with an inferior product. This is a material investment and shows Tesco to be the main aggressor in the market.'
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.