Holiday Shoppers Save 33% with Private Brands

Christopher Durham Nov 21, 2011 0

With the peak gift-buying season just around the corner, grocery shoppers might be especially thankful to find a way to sock away sure savings when stocking up on the essentials for their holiday feast. A timely survey looked at supermarket prices on 40 typical Thanksgiving list items and found that smart consumers could save nearly 33% if they opted for store brands products instead of the national brands.

The research, conducted by the Private Label Manufacturers Association (PLMA), assembled a market basket that included items such as stuffing mix and cranberry sauce, canned corn and green beans, refrigerated crescent rolls, turkey gravy, baking shells, whipped cream, pancake mix and real maple syrup, as well as more basic needs like sandwich bread, butter, soda crackers and breakfast cereal. Non-foods that made the list included aluminum foil, a meat thermometer, paper towels and napkins, antacid tablets and pink bismuth stomach remedy.

The study found that consumers would save $45.13 on average by purchasing the private label products, for a total market basket savings of 32.8%. Consumers would spend $92.31 when buying store brands, because the same market basket composed entirely of national brand products would run up a grocery bill totaling $137.44.

Typical Store Brand vs. National Brand Market Basket Comparison

 
National Brand
Store Brand
FOOD ITEMS
Unit Price
Unit Price
American Cheese Singles 16pk
$4.49
$2.99
Butter
$4.91
$3.62
Canned Corn
$1.18
$0.70
Canned Green Beans
$1.09
$0.94
Cereal
$3.69
$2.12
Cookies
$3.25
$2.36
Cranberry Sauce
$1.57
$0.85
Refrigerated Dough (Crescent Rolls)
$2.97
$2.09
Dry Cat Food
$4.85
$3.39
Dry Dog Food
$11.99
$9.99
Grape Jelly
$2.29
$1.69
Hot Cocoa Mix (10 pk)
$1.50
$1.12
Ice Cream
$4.72
$2.99
Ketchup
$2.39
$1.69
Macaroni & Cheese
$1.19
$1.01
Real Maple Syrup
$5.79
$2.99
Mustard
$1.49
$0.99
Oatmeal Packets (4)
$3.50
$2.37
Orange Juice (59 oz)
$3.74
$2.64
Peanut Butter
$3.56
$2.72
Pancake Mix
$2.60
$2.17
Pasta
$1.52
$0.97
Pasta Sauce
$2.29
$1.50
Pie Crust
$2.09
$1.06
Soda Crackers
$2.37
$1.87
Sandwich Bread
$3.69
$1.29
Soda (12pk/can)
$5.34
$2.81
Stuffing Mix
$1.91
$1.39
Turkey Gravy
$0.67
$0.91
Whipped Cream
$2.20
$1.84
NON-FOOD ITEMS
 
 
Aluminum Foil
$4.19
$2.50
Antacid Tablets
$3.99
$2.62
Aspirin
$6.69
$2.49
Adhesive Bandages
$3.69
$1.87
Facial Tissue
$1.47
$1.00
Meat Thermometer
$8.24
$6.99
Mouthwash
$4.89
$2.75
Napkins
$2.50
$1.79
Paper Towels
$2.35
$1.49
Pink Bismuth Stomach Remedy
$3.44
$2.99
AVG MARKET BASKET TOTALS
$137.44
$92.31

Prices shown reflect 4-week average for the period 10/22/2011 through 11/12/2011.
All prices are net after known discounts, coupons and/or promotions.

In the PLMA study, minimum savings were 25% or greater for 32 of the forty items, while twenty of the forty products surveyed saved consumers a third or more.

Nearly one in four grocery products sold today is the retailer’s brand. Store brands sales growth has outpaced national brands in consecutive sales quarters stretching back to the start of 2008.  In the most recent quarter for which statistics are available, store brands posted overall sales growth of +5.2%, while national brand sales grew a lackluster +0.7%.

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Christopher Durham

Vice President of Retail Brands at Theory House

Christopher Durham is the founder of My Private Brand and the VP of retail brands at Theory House, the branding and retail marketing agency. He is a consultant, strategist and retailer with close to 20 years of real-world retail and corporate experience creating, launching and building billion dollar Private Brands.

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