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Private Label Growing in Market Share

09/17/2024

According to market research practitioners, Alvarez and Marsal Consumer and Retail Group, private label spending on grocery items attained 20 percent of the market in 2023 and will continue growing.  The report noted the positive impact on financial performance following introduction of private brands.  During the post-COVID inflationary period, consumers accepted private brands based on lower cost but have since recognized inherent quality resulting in established brand loyalty

 

A number of traditional chains are embracing the private brand strategy applied by the deep discounters including Aldi and Lidl. This is emphasized in recent comments on the value of private brands by CEOs of the Kroger Company, Walmart and Target. The Nation’s national egg brands are experiencing competition from private brands as any review of dairy counters can confirm both with respect to shelf space and pricing.