Shoppers are becoming increasingly selective with how they spend, but that doesn’t mean they are simply trading down. Across the UK, consumers are balancing value-led staples with small, well-chosen indulgences – whether that’s food or sustainable swaps – creating a dual demand that retailers should navigate carefully to ensure they’re hitting all shopping needs.
Value remains front of mind. Own label now accounts for over half of grocery sales, reflecting continued pressure on household budgets and a growing comfort with retailer brands[1]. In convenience, where basket sizes are smaller and purchases more immediate, this often shows up in core lines, everyday essentials, meal solutions, and key top-up items.
But alongside this, there is a clear and sustained appetite for premium.
Kantar data highlights that premium own label ranges are one of the fastest-growing parts of the market, with double-digit growth continuing into 2025[2]. Even during periods of financial pressure, shoppers are still finding room for what Kantar describes as “pick-me-up” purchases – small, affordable treats that offer a sense of reward or escape .
This is where the idea of the ‘little treat’ has become particularly important.
Rather than cutting out indulgence altogether, shoppers are reframing it. Big luxuries may be reduced, but smaller, more accessible premium products still hold great value. Think better-quality ready meals, a premium chocolate bar, a chilled dessert. For many, this shift shows as rewards rather than big splurges.
This dynamic plays directly into the strengths of the convenience channel. Smaller stores are already built around immediacy and impulse, making them well placed to capture these treat-led missions. The key is not choosing between value or premium, but ensuring key lines of both are clearly visible and easy to shop.
Merchandising Value V Premium
Value lines need to be obvious and easy to access, particularly in core categories where price sensitivity is highest. At the same time, premium products should not be hidden. They work best when positioned as part of a moment, alongside meal deals, evening treats or food-to-go, rather than isolated on shelf.
There is also an opportunity to think in terms of missions rather than categories. A shopper coming in for a quick dinner solution might trade down on the main component but still trade up on dessert or drinks. Likewise, a lunchtime visit might combine a value sandwich with a more premium snack or beverage.
What ties this behaviour together is mindset. Shoppers are not strictly value-driven or premium-driven, they move between both, often within the same basket.
The challenge – and opportunity – is to make that movement easy.
[1] Kantar 2025: Consumers seek value as Britain heads back to school
[2] Kantar 2025: Consumers seek value as Britain heads back to school
