retail news in context, analysis with attitude

Brand Week reports on a new study from Information Resources Inc. (IRI) saying that “private label unit share has grown to 22.8 percent (up 1.2 points) in the past 12 months. Dollar share has grown 0.7 points to 17.6 percent.”

According to the story, “Store brands were most strongly represented in the grocery channel, with a 25.6 percent unit share, followed by Walmart, where they have a 23 percent unit share. Supercenters (22.7 percent) Club stores (17.7 percent), drug stores (17.6 percent) and dollar stores (16.8) followed. But between 2008 and 2009 every channel saw private labels expand both their dollar and unit share.

“Private labels have seen significant growth in categories like shortening and oil, tomato products and ice cream/sherbet between the years 2006-2009. However, in categories where national brands are dominant, such as weight control products, cat food and margarine, store brands have seen their shares drop.”
KC's View:
Two comments here.

One, retailers need to avoid complacency in this area. If they want to continue to grow private brands, they have to be aggressive about marketing and ambitious about product development.

Two, retailers need to think of private brands as part of a broader strategy that focuses on creating a brand identity for their stores, which can translate into equity that will, if nurtured sufficiently, create a differential advantage for stores.