In a recent survey by Consumer Edge Insight, respondents were asked about their usage and impressions of store brands across 60 different packaged good categories (including food, beverages, personal care, and household product categories) and across 25 different retailers. Respondents who had purchased store brands from a particular retailer were asked how satisfied they were with the brand, and the impact of that particular brand on their loyalty to the store that sells it.
Overall, the retailer with the highest average satisfaction among buyers of its store brands was Costco, with 63% of store brand buyers saying they were “very satisfied” with their purchase. Publix came in second place with 60% of store brand buyers saying they were “very satisfied.”
In terms of which retailers’ store brands appear to have the greatest positive effect on loyalty to the store, Whole Foods Market got the highest score with 60% of buyers saying they are more likely to visit Whole Foods Market as a result of the store brands sold there. Costco came in second with 57% of Kirkland buyers saying that the brand makes them more likely to shop at Costco.
“Most US retailers continue to invest heavily in improving store their store brand programs in order to win greater customer loyalty and improve their margins,” said David Decker, President of Consumer Edge Insight. “Given the expanding scope of their programs, it’s very challenging for retailers to create and sustain a program that not only scores highly on satisfaction, but also makes customers more loyal to their stores. Costco, Publix and Whole Foods should be commended for their outstanding performance in the eyes of their customers.”
The survey that these conclusions are based on was fielded in July 2013 among a sample of 3,191 adults who were nationally representative of the US population in terms of age, gender, income, region, race, and Hispanic origin.