retail news in context, analysis with attitude

The Wall Street Journal reports this morning that it has reached new agreements to sell two of its private brands – O Organics and Eating Right – outside its own stores.

Albertsons LLC reportedly will begin selling O Organics in 240 of its stores, while both lines will be sold at 150 ShopRite stores in South Africa and 100 Exito supermarkets in Colombia.

Three regional grocers in the US -- Big Y Supermarkets, Price Chopper and Hy-Vee – already have signed deals to sell the Eating Right line.

The expansion of the two lines is seen as a way for Safeway to broaden its portfolio, expanding on a strategy that already has it selling retail gift cards through its Blackhawk subsidiary in a wide variety of stores and formats. And, the move gives non-competing retailers a way of quickly rolling out a private brand that gives them a differentiated position in their own markets.

KC's View: