Store Brands Pump Up Retailers’ Margins

To boost margins, supermarkets, drug stores, and mass merchandisers are filling as much as 40 percent of available shelf space with private-label or store brands, according to KPMG’s Kathleen Kiley, Managing Editor, Consumer Markets Insider. The drive for private-label has not affected big-name products as much as a lesser-known
brands, which are getting squeezed off shelves. Store-brand and private-label
goods still comprise a small but increasing portion of total consumer product
sales. In 2001, mass merchants had $6.5 billion in private-label sales, up 12.2
percent from $5.8 billion in 2000, according to the Private Label Manufacturers
Association (PLMA). In supermarkets and
drugstores combined, private-label sales in supermarkets rose 1.1 percent, to
$37.8 billion from $37.4 billion a year ago, according to the PLMA.

Moderator Comment: What does a retailer need to do
to create a positive brand image with consumers for its private label program?

For a fine profile of one of the best at promoting its
brand image, check out the recent Shaw’s piece in Private Label Buyer
written by RetailWire commentator Warren Thayer. [George
Anderson – Moderator]

• More Than Ever, Store Brands Pumping Up Retailers’ Margins – KPMG Insiders