New Zealand supermarket chains say more shoppers are filling their trolleys with own-brand products as households continue to grapple with cost of living pressures.
Foodstuffs and Woolworths New Zealand have both reported steady growth in sales of their private label ranges over the past five years, saying the shift reflects customers looking for better value across their weekly shop.
Foodstuffs, which owns New World, Pak’n’Save and Four Square, said demand for its Pams range had "risen consistently in sales value and volume".
"Shoppers are continuing to watch their spending closely and look for good value," it said.
The co-operative said for every $100 spent in its stores, just over $13 now goes on private brand products - still lower than some overseas markets, where private labels can account for $20 or more per $100 spent.
Growth was the strongest in these everyday essentials
- frozen meat and vegetables
- pantry staples such as pasta and canned tomatoes
- baking ingredients
- chilled dairy items such as cheese and butter
Foodstuffs said shopping habits shifted significantly during the Covid-19 pandemic, when supply disruptions and tighter household budgets prompted more customers to try home-brand alternatives, with many continuing to buy them since.
Woolworths New Zealand said it had seen similar trends across its own brand range, releasing roughly 500 new own brand products each year to keep up with growing demand.
A company spokesperson said the supermarket had recorded "growing sales in own brand products over the last few years in many departments".
One shopper spoken to by TVNZ+ summed up the approach of many to the no-frills brands: "If it looks like a decent product and it's got a decent price attached to it, then I'm into it."
Cheese was a standout category, with significant growth in sales of Woolworths’ Everyday cheddar cheese in 1kg packets. Specialty cheeses such as brie, gouda and haloumi also proved popular with customers.
"Our 3 for $20 deals in meat and seafood have also seen continuous growth, once again driven by customers seeking value," a Woolworths spokesperson said.
Gap narrowed
Woolworths said customers were also increasingly buying its own brand fresh meat and vegetables, ready-cut fruit pots, nappies and Christmas hams.
While brand loyalty remained strong for some products, both supermarkets said the gap between premium brands and private labels had narrowed.
Foodstuffs said its Pams products now sat "comfortably alongside name brands", and that many customers were "mixing and matching" depending on their budget and preferences.
Woolworths said lower prices did not necessarily reflect lower standards, with its own brand products benefiting from lower marketing costs and greater buying power.
"No big TV campaign means a lower cost product," a Woolworths spokesperson said.
"There’s also the scale and buying power we bring to help lower costs."
Both retailers also pointed to work around clearer labelling, product reformulation and sustainability initiatives within their own brand ranges.
Looking ahead, Foodstuffs said value would remain "front of mind" for households, although what that looked like would differ between families.
Woolworths said it expected continued demand for affordable and convenient options.
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