Dive Brief:

• Aldi and Target’s Favorite Day were the top fastest-growing private label brands by household penetration in the second quarter compared to a year ago, according to a new report from Numerator. 
• Walmart is dominating household penetration, the report found. Out of the top 15 brands by household penetration, Walmart accounted for the top four consecutive ones — Great Value (72.7%), Equate (51%), Marketside (44.2%) and Freshness Guaranteed (40%) — followed by Dollar Tree, Kroger and Aldi, with penetrations just above 30%.
• Looking at perceptions among income groups, Numerator found that high-income shoppers have the most favorable opinion of private label — a surprising finding given store brands have long been equated with having value as a lower-cost alternative to national brands.

Dive Insight:

Numerator’s private label report comes at a time when high inflation and food prices are prompting consumers to trade down and switch from national brands to store ones. 

In the second quarter, private label brands accounted for 32.1% of sales in the club channel — nearly double its prevalence in the grocery channel, at 17.4%. Private label share for that quarter compared to a year ago grew less than 0.2% each in the mass and online channels, to 22.6% and 20.2%, respectively. 

Among retailer-specific findings, Numerator shed additional light on Amazon’s own brands. While the e-tailer giant has a higher private label share in consumer electronics and home goods, its share among grocery, household and health and beauty products is only 3%, Numerator found. Meanwhile, private label accounts for 14.7% of sales at its Whole Foods Market banner.

Numerator listed the Amazon Basics line, which includes household essentials like bedding, office supplies, cookware and fitness gear, as the third fast-growing private label brand by household penetration in the second quarter compared to a year ago, behind Target’s Favorite Day and Aldi. 

Examining private label trends across channels, retailers, consumer groups and product types, Numerator found that consumer sentiment for private label’s value for money has been consistent in recent years, with 55% of surveyed consumers saying that value has been “excellent or above average.”

Among different income groups, it’s no surprise that more shoppers, regardless of income, have increasingly said that price is more important than brand name as inflation has soared in recent months. While low-income shoppers have consistently said price trumps brand name more so than middle and high-income shoppers, that same group has been less likely to say a desire to save money drives private label purchasing and is also less likely to agree that private label quality has improved over time. 

More middle- and high-income consumers are buying private label products as a cost-saving measure, the report found.