instore - October 2017 - 24
category perspective
Private
label
Retailers reap benefits of
store-specific brands
by Andy Nelson
T
raditional supermarket sales of private label products remained
mostly flat in 2016, with dollar volume sales climbing just .1
percent, according to Nielsen data. That translated to a loss in
market share for the year, with private label accounting for 18.4 percent
of dollar share and 22.3 percent of unit share.
Numbers can be misleading, though, according to the New York-based
Private Label Manufacturers Association. Private label's slice of the
retail pie last year totaled $118 billion, but that figure doesn't include
some of the top users of store brands, according to an analysis by the
association. If figures from Costco, Aldi, Trader Joe's and other retailers
not included in the Nielsen data were added in, private label sales
would likely be closer to $150 billion, according to PLMA.
"Steady and widespread" is how PLMA characterizes the growth of
private label in grocery outlets in the past decade, with tens of billions
of dollars of incremental sales changing the retail landscape across all
channels.
The advantages of private label for instore deli and grocery are many,
says Brian Sharoff, PLMA's president.
PRIVATE PIONEER
Monrovia, California-based Trader Joe's
is famous for the many ways in which it
upends retail grocery norms. One of the
company's hallmarks is its extensive use
of private label brands.
24 * OCTOBER 2017 * instore
Private label in bakery and deli prepared,
however, does face challenges that private label
in center-store doesn't, Sharoff says. In bakery and
deli prepared, for example, it can be hard to find
existing industry benchmarks against which to
compare the quality of a private label product.
"The challenge is to make sure that the quality and
assortment of private label matches consumer
expectations," he says. "It's a little easier to
match good private label to well-known national
brands on ingredients, taste and packaging. In
deli, prepared and bakery, there may not be
comparable national brands, so the quality and
CULINARY CIRCLE, TRADER JOES
Included in its private label lineup are
instore items like gourmet cheese.
Offerings include Trader Joe-branded
Unexpected Cheddar ($3.99 MSRP) and
a fresh mozzarella cheese log ($4.99). If
Trader Joe's and other retailers that rely
heavily on private label were included in
Nielsen data charting category performance, industry insiders say, annual sales
would be close to $150 billion.
"The main advantage is private label in these
categories helps build consumer loyalty to the
retailer as well as contributes to the image of store
brands throughout the store," he says.
Table of Contents for the Digital Edition of instore - October 2017
instore - October 2017
Editor's note - Smart Growth
CONTENTS
Spotlight - BY THE NUMBERS: Muffins
Merchandising - ON DISPLAY: Holiday party trays
Cover story - Built on Service
No delivery too small
Commissary Insider - October 2017
Insight Insider: Wakefield Sandwich leverages c-store foodservice growth
Food Safety: Using probiotics to fight pathogens
Equipment: Accuracy, flexibility key in cake depositing
Tech: TrueCommerce EDI helps King’s Hawaiian
News - Need to know
Market research - Super consumers
Category perspective - Private label
Equipment & packaging - LATEST INNOVATION: Tamper-evident packaging
Product trends - FIRST TO MARKET
Product showcase
No label
AD INDEX
instore - October 2017 - instore - October 2017
instore - October 2017 - 2
instore - October 2017 - Editor's note - Smart Growth
instore - October 2017 - 4
instore - October 2017 - 5
instore - October 2017 - CONTENTS
instore - October 2017 - 7
instore - October 2017 - Spotlight - BY THE NUMBERS: Muffins
instore - October 2017 - 9
instore - October 2017 - Merchandising - ON DISPLAY: Holiday party trays
instore - October 2017 - 11
instore - October 2017 - Cover story - Built on Service
instore - October 2017 - 13
instore - October 2017 - No delivery too small
instore - October 2017 - 15
instore - October 2017 - 16
instore - October 2017 - 17
instore - October 2017 - 18
instore - October 2017 - Insight Insider: Wakefield Sandwich leverages c-store foodservice growth
instore - October 2017 - com - 2
instore - October 2017 - com - 3
instore - October 2017 - com - 4
instore - October 2017 - com - 5
instore - October 2017 - Food Safety: Using probiotics to fight pathogens
instore - October 2017 - com - 7
instore - October 2017 - Equipment: Accuracy, flexibility key in cake depositing
instore - October 2017 - com - 9
instore - October 2017 - com - 10
instore - October 2017 - com - 11
instore - October 2017 - Tech: TrueCommerce EDI helps King’s Hawaiian
instore - October 2017 - com - 13
instore - October 2017 - com - 14
instore - October 2017 - com - 15
instore - October 2017 - com - 16
instore - October 2017 - News - Need to know
instore - October 2017 - Market research - Super consumers
instore - October 2017 - 21
instore - October 2017 - 22
instore - October 2017 - 23
instore - October 2017 - Category perspective - Private label
instore - October 2017 - 25
instore - October 2017 - 26
instore - October 2017 - 27
instore - October 2017 - Equipment & packaging - LATEST INNOVATION: Tamper-evident packaging
instore - October 2017 - 29
instore - October 2017 - Product trends - FIRST TO MARKET
instore - October 2017 - 31
instore - October 2017 - Product showcase
instore - October 2017 - No label
instore - October 2017 - AD INDEX
instore - October 2017 - 35
instore - October 2017 - 36
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