A spotlight on supermarkets

Our Most Loved supermarkets this year are M&S Simply Food, Aldi and Tesco.

Aldi and Tesco come in at #14 and #20, respectively — strong standings, but both have fallen 4 places since last year.

M&S Simply Food makes its debut in the Top 10, climbing an impressive 9 places year-on-year, officially usurping Aldi, trading places since our Retail report earlier this year, demonstrating just how close the pair of supermarkets are.

Despite being a premium brand in a competitive market, M&S has seen an increase in Brand Love (+2.6 percentage points), whereas more budget-friendly brands like Aldi and household names like Tesco have lost ground.

Top marks for quality

M&S has managed to revitalise itself, not just by tapping into trends, but by doubling down on their commitment to quality — a gamble that has appealed to consumers willing to pay more for good products. It appears to be working; in 2023, the supermarket recorded its strongest ever pre-Christmas sales.

A closer look in BrandVue Retail reveals M&S has balanced its image perceptions, bolstering its ‘value’ proposition even as it maintains its ‘premium’ reputation. By providing high-quality groceries, it delivers value not through cost-cutting but through an unyielding dedication to consistent excellence. Its ‘Dine In’ offer, coupled with the budget-friendly ‘Value Range,’ make for perfect strategies to convey this value.

Not to be outdone, Sainsbury’s has emerged as another notable success, now the 54th Most Loved brand—jumping 38 places from last year. Sainsbury’s has approached the balance between ‘value’ and ‘premium’ by leveraging its Nectar card scheme and “Points Power Up” initiative, while continuing to promote its ‘Taste the Difference’ range to appeal to customers seeking quality.

Price tag tug-of-war

Inflation poses a challenge for budget-friendly retailers like Aldi and Lidl, leading to a necessity to raise prices and potentially erode their competitive edge. Consumers are more likely to react negatively to price increases at discount stores, as they are accustomed to low prices. Consequently, any increase could feel like a loss. This contrasts with M&S’s approach, where value is associated with the quality of the offer rather than price alone.

Importantly, both Sainsbury’s and M&S have seen an increase in perceived value, while traditionally ‘value’ supermarkets like Aldi have seen a decline.

Moreover, Aldi is losing appeal among key audience Gen Z, dropping slightly in Brand Love among this demographic (33% vs 37% last year). Meanwhile, M&S has increased its Love scores across the young generation (27% vs 22%).

The grocery sector’s dynamic is clear: as brands like M&S and Sainsbury’s navigate the nuances of value perceptions, they find themselves in the light of consumer affection. Meanwhile, brands traditionally noted for low costs like Aldi must reassess their strategies in the face of another year of changing consumer values and economic pressure.

This article was initially published in The UK’s Most Loved Brands report, which you can instantly download – for free – below.