COVER STORY
Pandemic Retailing’s
Secret Weapon Private brands played a critical role for retailers when consumers began stocking up on sought-after products like hand sanitizer, disinfectants and more BY DAN O CH WAT
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Store Brands
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December 2020
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As 2020 — a year that will go down in history as one of the toughest for the retail industry due to the global significance of COVID-19 — nears its end, some product and shopping trends impacting the private label and store brands segments are expected to bleed into 2021 and beyond. One of those trends is a continued increase in supply of such pandemic-related products as hand sanitizer, disinfectants, OTC medicines and personal protective equipment like face masks. However, as a result of shoppers buying in bulk and panic shopping, some products that may not seem like a “pandemic product,” per se, saw unprecedented levels of growth worth noting, too. Products like meats, alternative meats and even oat milk (both branded and store brand offerings) sold at unprecedented levels and continue to do so heading into the new year. According to Nielsen figures, shared with Store Brands, sales of pandemic products from January into late October skyrocketed during the first round of COVID-19. It’s a reflection of just how turbulent 2020 has been. And no category saw a bigger impact than hand sanitizers. For the 34 weeks ended Oct. 24, hand sanitizer sales were up nearly 700% compared with a year ago. In the May and June months, early pandemic, hand sanitizer sales were up 1,280% and 1,339%, respectively, dipping down to a 986% increase in July. Total sales for the 34 weeks were well over $1 billion. With numbers like those, product supply was clearly an issue in stores and some retailers even began carrying new own brand hand sanitizer to keep up with demand. Delivery service Instacart developed its own brand of hand sanitizer to help keep its staff safe. Additionally, some manufacturers not normally producing sanitizer began developing it for private label, including regional food and alcohol supplier LiDestri Food and Drink, based in Fairport, N.Y. Producers in the category such as Clenova, headquartered
www.storebrands.com
12/4/20 3:54 PM
