USA: Private Label brands prospect to brighten as recession hits cash-strapped consumers
Updated: Aug 17, 2020
Consumers feel the need to be careful with their money because that is a lesson that everybody has learned from the Great Recession a decade ago. This means private label brands are going to do well. It's a nice tailwind for private label brands under the current environment.
Since the last recession more than a decade ago, retailers such as #Kroger, Discount Retailer #Aldi, #Costco, #Wegmans, #Publix, Aldi owned #Trader Joe's and even Discount Retailer Dollar General have invested heavily in the space through better package designs, improved quality and multi-tiered offerings.
Private brands in the U.S. generated $153 billion in 2018, including edible and non-edible products across multiple retail outlets, according to a report last year from #The Food Marketing Institute and #IRI. The firms found the products are reaching a larger audience across demographics and generations. Kroger, the largest supermarket chain in the U.S., gets about 20% of its $122 billion in annual sales from its own private brands, while at Albertsons, the segment now makes up more than a quarter of its total revenue.
Even if the economy rebounds fully, it is expected there will be new work norms that will enable more people to work from home — and there will be increased household consumption of the private brands customers grew to love during the stay-at-home time."
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