2010 Private Brand Sales Show Continued Growth

According to the Private Label Manufacturers Association Private Brand sales across the three major retail channels, which the PLMA tracks reached new highs in 2010.

According to PLMA’s 2011 Private Label Yearbook, which tracks Private Brand sales and market share trends based on Nielsen Co. data for the year ended December 25, 2010, found that when looking at total outlets — which is comprised of U.S. supermarkets, drug stores and mass merchandisers, including Walmart — store-brand sales increased by nearly 2%, while dollar share advanced by almost half a point to a new record level. This brought total sales to $88.5 billion, according to the Nielsen data.

PLMA also said among these increases, Private Brand sales increased more than 2% and nearly 5% in supermarkets and drug store chains in 2010, respectively. Over the past decade, annual sales of Private Brand products have increased by 40% in supermarkets and by 96% in drug stores, PLMA said.

PLMA noted that while the numbers prove the growth of the Private Brand market, there is an estimated $15 to $20 billion in additional Private Brand sales that occur in channels not reported to the Nielsen databases, including warehouse clubs, limited-assortment stores, convenience stores and dollar stores. If these data were reported, the total sales likely would have produced a grand total exceeding $100 billion for 2010, PLMA said.

PLMA also noted growth was attributed to the recession, which forced consumers to alter their shopping habits, as well as “the extreme efforts by national brand marketers in 2010 to recapture some of the market share they lost to store brands over the previous years.”

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Christopher Durham
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.