Woolworths dumps Homebrand, sticks to Essentials

WOOLWORTHS is ditching its Homebrand because consumers perceive that it offers low quality along with the lower price - and are deserting in favour of Aldi for cheap groceries.

The familiar red and white branding, which has been around for 30 years, will be rebranded as the Essentials line, which has a similar price range but is viewed as more upmarket, according to Mumbrella.

Generic brands like Woolworths Homebrand and Black and Gold became popular in the 1980s as households tightened their belts in fear of recession.

Around 12% of Australians buy generic brands, retail analyst Barry Urquhart told Mumbrella.

"In pursuit of increased profits Coles and Woolworths have increased that market share of house brand to anywhere from 23% to 28%, but in so doing the expectations of...house brands by consumers has improved appreciably," Mr Urquhart said.

Homebrand offers groceries from flour, sugar and oats to lasagna, meat pies and chicken nuggets.

According to Roy Morgan research, around a third of supermarket shoppers buy mostly home brands and 70% prefer other brands - except for at Aldi, where 63% of people prefer home brands.

Do you buy generic brands? Why or why not? Let us know below.



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