Shoppers’ dollars continue to go towards store brands as consumer perception shifts. Here’s how supermarkets are keeping the momentum.
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.
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.
