What started as a trade-off by retailers to help ease inflationary pressures has amounted to a valuable customer loyalty tool that goes beyond lower prices.
It seems like every grocer has made strides in expanding their private label portfolios, from specialty grocers like Sprouts Farmers Market to mass retailers like Walmart. Kroger recently added a new produce line to its private label portfolio, bringing in not only affordable seasonal fruits but also a way to help its customers shop locally. Meanwhile, back in June, Sam’s Club started an initiative that lets its customers “co-create” products for its Member’s Mark brand, allowing for more personalization throughout the brand.
Private label sales are on track to reach $250 billion by the end of 2024, up from 2023’s total private label sales of $236 billion, Diana Sheehan, principal and CEO of PDG Insights said during a webinar in August.
In addition, 32% of consumers plan to replace national brands with private label next year, Sheehan noted.
“People are definitely buying private label because it’s a cheaper alternative. But they're also buying private label because of the value they get from new items and high quality products and unique products and things that they feel really are tailored to their needs and their focus from the retailers that they trust in their community,” Sheehan said.
Here’s a look at some of the most notable private label moves grocers have made throughout 2024 so far.
