A nice opinion piece from David Orgel Executive Director, Content & User Engagement , at the trade publication Supermarket News. He focuses on the recently released results of their SN Center Store Survey and potential implications for Private Brand
Private label’s next acts on center store stage
You can’t help but sense the bullishness in the results of this year’s SN Center Store Survey, which appear in this issue beginning on the front page. A total of 28.8% of retailer respondents expect gains in center store dollar sales of between 2% and 4.9% this year, 19.5% anticipate growth of 5% to 10%, and a very upbeat 5.9% predict a rise of more than 10%.
You need to peer deeper into the results to find out what’s generating this growth, and one of the top drivers is private label. Some 69% of retailers said private label represents a bigger portion of shopper baskets versus a year ago.
The survey not only underscores this growth, but it hints at what’s ahead for private label in the near-term.
Store labels are increasingly being used as competitive weapons to battle the onslaught of other types of retailers selling food.
Retailers taking the survey pointed to Walmart, dollar stores and natural food retailers as the biggest threats to supermarkets’ center store sales, but conceded there are others as well.
Asked how supermarkets can best fight competitors for center store sales, the top answer was private label (23.7% of retailers). Almost the same percentage cited price, and it’s apparent from comments throughout the survey that retailers see store labels and price as closely linked strategies in a value equation.