Range rationalisation restricts new product contribution

The number of items stocked in an average multiple retail outlet selling groceries, personal care, household and health products has been falling since mid-2014. Over the period of our study, January 2013 to December 2015, this has resulted in 1,000 fewer packaged grocery items appearing on grocer’s shelves, a drop of 6.3%.

At the same time, we are seeing a significant reduction in the numbers of branded new products being launched. Across packaged groceries, there were 13% less new branded items launched in 2015 than in 2013, the reduction was steeper amongst food categories than amongst non-food categories. The number of private label items launched fell twice as quickly, by 26%.