• Discount Retail Consulting GmbH

Global: Why Private Label brands are Critical to Retail Success

Updated: Aug 17

Now is the time for private label brands to help consumers and expand category presence


While retailers continue to search for ways to provide their customers with the best quality products, store brands offer a way to provide those products at a lower price and build customer loyalty at the same time. Private label and store brands are now an integral part of category growth strategy for retailers across the world.

According to The Private Label Manufacturers Association (PLMA), in the US private label grew by 4.4% in 2018—four times as much as national brands—and store brands’ market penetration set all-time records. Private label sales added $5.5 billion in sales to reach between $129 billion and as $170 billion overall. They estimate that one out of every four products sold in the United States is a private label or store branded product.


“While shoppers across generations and income groups in 2019 are undoubtedly more price conscious, they are turning to private label because of their positive perceptions of the value,” said Joan Driggs, vice president of Content and Thought Leadership. “Shoppers are buying private brands because it makes them feel good to save money without sacrificing taste, selection or quality. The improved consumer perception of private label value is having a growing influence on store choice, with many leading retailers offering premium private label selections.”


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