In UK, private-label are very much in the lime light at present, with both Sainsbury's and Asda launching or re-launching new private-label brand ranges encouraged by the need to enhance their market share. Asda, the UK's second largest supermarket group, has re-launched its entire range of more than 3,500 private-label food products and invested over £100 million in a drive to enhance the quality of their products without impact on price. The Asda's own brand range, "Smart Price", "Chosen by You" and "Extra Special", account for close to 50% of group sales with 85% of that accounted for by the mid-tier range "Chosen By You". On the other hand, Sainsbury has emerged as the big four’s winner in UK over the past three months; the performance comes after Sainsbury’s last week unveiled a rise in like-for-like sales of almost 3% for the previous three months. However, Asda continues to see its share under pressure, with a drop of 0.1%, but this is better than in previous months and due to the re-launching of Asda’s core own-label range through the ‘Chosen by You’ campaign.

On the basis of given facts, it seemed like Tesco will be facing a toughest competition of all times in terms of its sale of private-labels due to re-structure approach by their close competitors (Asda and Sainsbury). One might assume that it may have a dramatic change in their sales growth of private-labels. The consumer’s perceptions and attitude towards own/private-label brands might dramatically change as well, because they will be more efficiently influenced by Asda and Sainsbury due to their differential business efforts.