Daymon report sees a very bright future for private label
Additionally, Daymon’s report is looking at private brands in the COVID-19 era and what that future holds. The report said private brands are well positioned for the future. Daymon’s custom analysis of store brand programs across the country reveals that best-in-class retailers dedicate 43% of their own brand programs to value-added lifestyle items, compared to the industry average of only 16% — nearly three times the expected level of assortment differentiation.
It’s this shift toward lifestyle programming that is positioning store brands as being stronger in the eyes of consumers, the report said. Daymon’s research demonstrated that four in 10 say that private brands now offer more new and innovative products than in the past, resulting in nearly eight in 10 saying that store brands are “on-trend,” and even more so than national brands, representing a 15% increase in favorability towards private brands over the last two years.
Private brands also have grown their market share in 88% of categories across the store over the past three years, the report said, and pandemic shopping is only going to fuel this, including online. The report said 2019 annualized online sales of private brands reached $1.7 billion, an 87% year-over-year increase. Factoring in COVID-19 shopping habits online in 2020, that number will certainly grow by a big number.