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Supermarkets Could Boost Private Label Sales Amid Price Inflation: IRI

As major FMCG brands pass on inflationary price increases to consumers, retailers have the opportunity to increase sales of private labels by holding prices in categories where they wish to increase penetration and grow value sales, according to IRI.

The latest biannual FMCG Demand Signals report has revealed that demand for major supermarkets’ private labels has dragged, preventing them from capitalising on potential growth in value sales, despite promotions and prominent positioning on grocery apps and websites.

Ananda Roy, international senior vice president, strategic growth insights, IRI, said, “As inflationary measures hit parts of Europe and national brands raise their prices, retailers must decide exactly where they will allow price increases to flow directly through to consumers.

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