The Private Label Manufacturers Association’s PLMA e-Scanner newsletter reported this week that Citigroup analyst Deborah Weinswig predicted that 2010 would be a “breakout year” for private brand growth.
“We believe that there will be another growth spurt in 2010 for private label and exclusive products as retailers cater to the growing demand for these products and better merchandise these products in-store to appeal to the consumer,” she noted in a report.
According to Weinswig, this past year has seen a “modern-day price war” amongst food retailers, but now an “old-time price war” is on the horizon, spurred by Walmart’s aggressive price cuts. “We view this move as a game-changer in the food retail industry in 2010,” she said in the report. “As a result, there likely will be further price investments from food retailers and gross margin pressure as they scramble to match Walmart’s aggressive pricing in 2010.”