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Planet Retail is out with its first “Private Labelling in North America: Fertile Ground for Growth” report, saying that private label sales by the continent’s top 30 grocers - including Walmart, Kroger and Aldi - are set to increase 40 percent to $209 billion (US) by 2014, and account for 24.1 percent of total grocery sales.

The report goes on: “Dominating the top position in Planet Retail’s rankings is Walmart whose private label grocery business is larger than Kroger and Costco’s private label sales combined. While it’s no surprise that Walmart tends to dominate most categories, in grocery it has traditionally been the national brands that featured heavily on Walmart’s shelves ... A key player on the ranking is Aldi which, although placed 19th in terms of overall sales, holds the prestigious 3rd place in terms of private label sales. The retailer, which includes the Aldi and Trader Joe’s banners, places a much stronger emphasis on private label than its peers, leaving national brands to make up just 15% of sales. As a result of aggressive expansion plans, Planet Retail predicts that by 2014 Aldi will generate $15 billion in private label sales, approximately the size of H-E-B’s entire business today.”

In order, the top ten private label retailers are: Walmart, Kroger, Aldi, Costco, Safeway, Loblaw, Supervalu, Publix and Ahold.

“Looking to the future, the effects of SKU rationalisation and the emergence of new discount formats will continue to breed private label growth in North America,” says Natalie Berg, Planet Retail’s Grocery Research Director. “Increased competition from private labels will require genuine innovation from brand manufacturers.”
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