C-stores must focus on big brands despite the “Aldi and Lidl effect” hitting sales of branded goods in supermarkets.
A senior FMCG executive told RN sales of big brands are declining as people realise they can buy cheap, high quality goods from discounters.
But retailers located near discounters told RN they can’t compete on cheaper lines, so they offer big brands instead.
“You can’t compete on pricing, so it’s better to focus on what you do that they don’t do,” said Jayesh Parekh of Jay’s Costcutter in Manchester.
“For example Aldi don’t do Smirnoff vodka so people come here for the brand name.”
Jimmy Patel of Jimmy’s Store in Northampton agreed and said people always switch from own label to brands if there is a promotion on them.