Source: Australian Food News

Many of Australia’s supermarkets are moving towards private label groceries, but while consumers are interested, the price drop may be hurting retailers in the long run, according to new research by Nielsen’s Homescan panel.

Private label products grew slightly in the last six months, going from 24.5% to 24.7% of total groceries over two quarters. However, this quarter saw the average spend on private label drop by $5.79 - down from $208.03 in the December quarter to $202.24 in March.

On closer inspection, consumers are not buying less private label goods, but the pricing war between the two major supermarkets has directly impacted bottom lines.

To read the full story, follow this link: www.ausfoodnews.com.au/2011/05/10/private-label-sales-up-but-price-war-takes-its-toll.html