SPECIAL REPORT
Private Brands
Stealth on the Shelf PRIVATE BR ANDS HAVE OPPORTUNITIES FOR GROW TH, BUT TO SUCCEED, RE TAILERS MUST BE MORE STR ATEGIC IN THEIR THINKING — ESPECIALLY AS COMPE TITION FROM MULTIPLE CHANNELS HE ATS UP. By Jenny McTaggart
ith record inflation looming large in the minds of most American grocery shoppers, retailers’ private brands are well positioned to experience further growth this year. Experts stress, however, that it will take some renewed focus and ingenuity for grocers to truly take their strategies to the next level. What’s the current state of private label? It depends on whom you ask and what you’re measuring. Dollar sales have certainly been up for
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Natural food retailers like Whole Foods Market attract shoppers with the value and lower price of their private brands. Produce is seen as a huge growth area for private label, particularly as prices continue to rise due to inflation.
Key Takeaways Despite private brands’ potential for further growth, it will take renewed focus and ingenuity for grocers to truly take their strategies to the next level. Inflation is playing a key role in how some consumers shop for private brands, whose lower prices and value for money are particularly attractive during periods of economic downturn. Driving consumer trial of store brands is key to success; ongoing product innovation and omnichannel marketing are key components of this.
