Top story
Sales at the biggest 25 branded players in UK fmcg increased by almost a fifth in 2023 as new analysis by OC&C revealed that Britain’s largest food brands held back competition from cheaper own-label alternatives.
It is only the sixth time brands have outpaced own label in revenue growth in the past 20 years, the new Top 150 UK suppliers report found.
“The phasing and, perhaps, the aggression of price increases” was most likely driving branded’s growth, said OC&C global managing partner Will Haylar.
Volume figures were not disclosed by all companies, but the total revenue rise was ahead of inflation – suggesting a rise in unit sales too.
The figures will reassure branded suppliers they can regain market share after own-label sales surged in 2022.
“Historically, when own-label businesses have gone through growth spurts, they’ve managed to hold on to those share gains,” said OC&C partner Nilpesh Patel. “But that’s not a given this time around.”
The biggest revenue jumps were at Skyes Seafoods, Tate & Lyle Sugars owner ASR Group and Monster Energy.
Click here to read the whole story and check out thegrocer.co.uk later today for the full in-depth feature on the OC&C Top 150 report.
Morning update
Total retail footfall in the UK has declined in October after rising in the previous month, according to the latest data released this morning.
British Retail Consortium CEO Helen Dickinson said the marginal decline was primarily caused by half-term moving out of the comparison period.
Total UK footfall fell 1.1% this month, compared with a 3.3% rise in September, the BRC-Sensormatic data showed. High street footfall decreased 3.6% and shopping centre footfall was down from a 2.3% rise in September to a 1.6% fall. Retail traffic increased by 4.8%, although it was down on the 7.3% growth in the previous month.
“Retailers have seen footfall consistently fall since the pandemic,” said Dickinson. “Thriving high streets and town centres are not only good for local economies but also form a key part of the social fabric of communities up and down the country.
“With 6,000 stores closing in the past five years, retailers now need a policy environment that supports growth and investment.”
Tesco has completed the sale of its banking operations and started an associated strategic with Barclays, following an earlier announcement on 9 February.
The exclusive 10-year partnership will give customers access to Tesco-branded banking products and services while combing the supermarket’s physical and digital reach and customer focus with Barclays’ financial services capabilities.
It will also create opportunities to develop new and innovative Tesco-bank products, according to the retailer.
Tesco will retain existing insurance and money services activities, including ATMs, travel money and gift cards, which are deemed capital-light, profitable businesses with a strong connection to the core retail offer.
“We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers,” said Tesco Group CEO Ken Murphy.
“Through our strategic partnership, customers will have access to new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard.
“This is a significant moment for all our colleagues at Tesco Bank and I want to say a heartfelt thank you for all their hard work, helping millions of loyal customers to manage their money for more than 25 years.
“Their dedication is relentless and I know that this new partnership with Barclays will only build on their success.”
Tesco received approval from the High Court for the banking business transfer on 17 October, effective from 1 November.
Having completed the sale, Tesco said it intended to return £700m to shareholders via an incremental share buyback, being the full cash proceeds and the additional net cash after the settlement of regulatory capital amounts and after transaction costs.
This is expected to commence following completion of the final tranche of the £1bn buyback programme which is currently underway.
C.S. Venkatakrishnan, group CEO of Barclays, said: “We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays.”
Barclays UK CEO Vim Maru said: “We will bring the strength of both businesses together, benefitting customers and colleagues.
“I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the UK with their financial needs.”
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