This week Instore Marketing Institute & Shopper Marketing published this insightful piece on Private Brand, take a multichannel look at the growing Private Brand market. The article examines a wide range of retailes ranging from RiteAid to Best Buy.
According to the article: Todd Maute, senior vice president and partner at CBX, a New York-based branding and design firm, says the growth of shopper marketing has changed how they’re looking at private label. “The use of frequent shopper data is changing the dynamic. The shift has gone away from the CPG companies to the retailer because the retailer has the data and the place where those shoppers are being engaged, which is the store.”
By Erika Flynn
Spanning more than 100 categories in food, beverages and household consumables, Walmart’s Great Value brand is the largest retail food brand in both sales and volume.
In fact, Walmart’s total own brand sales (including other house brands) significantly exceeded total sales from Coca-Cola, McDonald’s and Google combined last year, according to Giovanni DeMeo, director, global brand development for Daymon Worldwide Design, a private-label development firm in Stamford, Conn.
A complete relaunch of the “couple thousand”-SKU Great Value brand began hitting store shelves at the end of March, featuring a consistent packaging design, the reformulation of 750 products (that weren’t previously hitting national-brand standards), and the addition of 80 others.
Not only does the revamp show Walmart’s lasting commitment to private label, but it also comes at a time when an increasing number of retailers, large and small, are leveraging their store brands.
“Our customers are expecting more out of our private brands, and we’re responding to their needs,” said Andrea Thomas, senior vice president of private brands for the Bentonville, Ark.-based retailer during Reuters Food and Agriculture Summit in Chicago in March. “The brand reinforces Walmart’s commitment to helping customers save money by offering national-brand quality for less.”
Read the entire article: Special Report: Private Label Update