Dive Brief:

• ShopRite has launched a new private label line, ShopRite Trading Company, that consists of “premium, artisanal foods inspired by a variety of world cuisines.” The line is available at more than 270 locations in New Jersey, New York, Connecticut, Maryland, Delaware and Pennsylvania.
• According to a company press release, the ShopRite Trading Company’s foods are imported from Italy, Ecuador, Spain and Greece, and other products are inspired by Asian, Indian, Greek and Latin cuisines. 
• The ShopRite Trading Company line joins ShopRite’s other store brands, including Wholesome Pantry, which was launched in 2016. 

Dive Insight:

In its press announcement, ShopRite notes that it has been selling products branded under its label since the mid-1950s, a not-so-subtle nod to its longevity — and expertise — as more brands embrace the private label trend. According to Nielsen, private label brands are growing three times faster than national brands, and a wave of retailers including Costco, Kroger and Walmart have shifted their strategies to focus more on this category. 

ShopRite isn’t leaning on experience alone, given the recent uptick in competition, and is going all in on innovation. The retailer says the new line can be found in “nearly every aisle,” including frozen and dairy, and expects to add new items every month. This should help its customers quickly get up to speed on the Trading Company brand, especially as ShopRite faces a bit of a challenge in streamlining three of its previous private labels under this new moniker. The company will also educate consumers about its new Trading Company label through signage and shelf tags.  

Since private label has become a significant revenue stream and a more intense battleground for grocers, it is good timing for ShopRite to include a little housecleaning in its approach. According to Dave Harvey, vice president of thought leadership for Daymon, a branding and retail services provider, private label brands typically need to be revamped every three to five years in order to stay relevant with shoppers. 

For ShopRite, its biggest advantage in this space is its focus on global and globally inspired offerings. According to the National Restaurant Association, 66% of consumers eat a wider variety of ethnic cuisines now than five years ago, while 80% of consumers eat at least one ethnic cuisine per month. IBISWorld notes that demand for ethnic food is strong, driven by millennials and a growing immigrant population, which indicates these preferences have staying power. 

The surge of premium private labels has stiffened competition between retailers, but ShopRite’s “artisanal" and exotic products could be an important differentiator as more consumers crave international flavors. Daymon CEO Jim Holbrook recently said the most successful retailers have "distinctive, one-of-a-kind private brands" — a value-add ShopRite may have with Trading Company.