Buyers turn to self-label lines to save money

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Research shows shoppers are turning away from branded sauces, cereals and drinks and opting for supermarket own brand counterparts to save money.

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In January, grocery prices were up a record 16.7% from a year earlier, Kantar said.

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Households are facing a £788 increase in their annual grocery bill if they do not change their behavior to cut costs.

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Supermarkets are using price-matching with rivals and savings through loyalty schemes to encourage people to shop with them.

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However, consumer spending on promotions such as two-for-one is at a record low, accounting for only 23% of spending in the four-week period studied by the market research firm.

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Kantar said supermarkets are instead focusing on keeping prices of everyday items low.

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The research firm looked at the momentum of price increases in the four weeks to January 22 this year.

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Discounters Aldi and Lidl have been grabbing a huge slice of the grocery market in the UK for several years as people hunt down bargains and open new stores.

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Sales at Aldi and Lidl rose by almost a quarter in January and their market share grew by around 1% each as this trend continued – but higher sales were also driven by price increases.

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Discounters Aldi and Lidl have been grabbing a huge slice of the grocery market in the UK for several years as people hunt down bargains and open new stores.

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Sales at Aldi and Lidl rose by almost a quarter in January and their market share grew by around 1% each as this trend continued – but higher sales were also driven by price increases.

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The three biggest supermarkets: Tesco, Sainsbury's and Asda saw their sales value increase by almost 6% in January, but their market share fell slightly.

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