Product manufacturers could benefit from investing in custom designed labels to attract consumers, as analysts are expecting to see leading retailers report a drop in sales.

Numerous financial experts believe constraints on consumer finances, such as rising inflation and the recent increase in VAT, will impact on sales at outlets such as Next and Sainsbury's.

Indeed, observers at Evolution told the Daily Mail the supermarket chain is vulnerable because of the "difficult consumer environment, with industry growth slowing and price competition rising".

This could prompt retailers and manufacturers to look at new ways of attracting customers in these times of austerity, such as a promotional label containing coupons or details of special offers.

According to the latest figures from the British Retail Consortium, food inflation fell from 4.6 per cent in January 2011 to 4.5 per cent in the following month.

However, data showed that overall shop price inflation went up from 2.5 per cent to 2.7 per cent during the same period.

Denny Bros Ltd, 22 March 2011