Motley Fool Bullish in Private Brands

MotleyfoolThe Motley Fool has a nice piece evaluating Private Brands and their credibility as investment opportunities, and don’t miss the chart comparing the Private Brand unit share and dollar share with the unemployment rate.

Store Brands Killing the Competition

Think you can hide from slumping U.S. consumer spending behind shares of traditionally steady staples companies such as General Mills (NYSE: GIS) and Johnson & Johnson (NYSE: JNJ)? Perhaps, but it could pay to think outside the proverbial box.

At this point, the cat should be out of the bag: Grocers and other retailers are pushing their own labels as value alternatives to the pricier brand names on the next shelf down. The trend isn’t limited to low-income shoppers, either. From Wal-Mart Stores’ (NYSE: WMT) Great Value brand to Whole Foods‘ (NYSE: WFMI) 365 products, consumers have trade-down options across the price spectrum.

Read the entire story.

The post closes with this prophetic statement:

Ultimately, investors who casually dismiss private label as a one-hit recession wonder could eventually find themselves wishing that their thinking hadn’t been, well, quite so generic.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.