Private Brand Takes Center Stage

David Orgel

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

Supermarket-News-logoYou 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.

Read the entire article.

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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.