(Bloomberg) --

Supermarket shoppers in Britain are increasingly opting for own-brand labels in a bid to save pennies on groceries.

J Sainsbury Plc is seeing some customers switch into economy own-label goods and rival Tesco Plc said last month that clients are moving to store-brand versions of bread, pasta and beans. 

Households could save £542 ($649) a year by switching from branded products at Britain’s four biggest supermarkets to discounter ranges, according to research carried out by rival discount grocer Aldi. Sales of mainstream brands are starting to decline and own-label grocery sales grew 2.9% over the past four weeks, the Aldi analysis shows. 

This is happening as retailers push back against some major brands’ prices. Both Kraft Heinz Co., maker of ketchup and baked beans, and confectionery company Mars Inc. have found themselves in tussles with Tesco over the past week over increases the supermarket chain has called “unjustifiable.” 

Read more: Mars Stops Supplying Pet Food to Tesco as Fresh Price Row Begins

“Customers are watching every penny and every pound,” Sainsbury Chief Executive Officer Simon Roberts said Tuesday as he touted the retailer’s effort to match Aldi’s prices on 240 products, including a list of 20 that customers buy most often. Tesco, meantime, says it’s matching the German discounter’s prices on more than 600 items.  

The fastest inflation in 40 years is pressuring both consumers and retailers. The average annual UK grocery bill is on course to rise by £380, according to the latest data from Kantar. More than half of supermarket items, some 22,000 products, saw their prices increase in the past year, data from retail research firm Assosia shows.

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