An an interesting article from BNet they take a look at North Carolina based dollar/value retailer Family Dollar with the following two paragraphs on the importance of Private Brands at the retailer.
The discount chain is therefore putting more emphasis on food and consumables while taking a cautious approach to discretionary categories such as apparel. It is also going into the private-label business with much more authority.
Private labels offer the company multiple benefits. They provide a range of products it can consistently sell at a 10 to 25 percent discount to manufacturer brands, noted Josh Braverman, a Family Dollar spokesman. Also, CFO Kenneth Smith, in the company’s second-quarter conference call, pointed out that private labels reduce the cost of goods sold, potentially boosting profits as well as sales.