Grocers Focused On Private Label Growth
Private label remains top of mind for many retailers, and continued growth of store brand products throughout 2025 is a focal point for many grocers, new data from Progressive Grocer’s annual State of the Industry study revealed.
With issues such as product pricing and the potential impact of tariffs continually on shoppers' minds, grocers surveyed by Progressive Grocer, a sister publication of Store Brands, said they expect private label products to drive the most sales and growth this year.
In the report, 69% of survey respondents ranked private label as the top department generating sales, outpacing dairy (64%), center store (63%), frozen food (58%), beer/wine/liquor (53%), and produce (53%).
Additionally, 73% of grocers said private label/store brands are a key strategy for a company’s merchandising/brand enhancement. The segment is on par with other notable grocery categories, including signature products (76%) and prepared foods/food service (75%).
When asked for the top department for anticipated sales growth, private label ranked first, with 17% of respondents choosing the category. Meat (15%), center store (14%), and curbside pickup/BOPIS (10%) were ranked second, third, and fourth.
Grocers also shared their thoughts on how they would drive future private label sales growth. Feedback included:
• “Increased assortment, price investment, and displays of private label and reduced reliance on branded products from CPGs that give Costco and Walmart preferential treatment.”
• “Through a combination of reformulating and rebranding existing products, as well as making strategic investments into competitive pricing for these items.”
• “Offer more products, display both side by side national brands along with endcaps and pallet drops of deals.”
• “Consumers continue to buy more private label products as inflation continues to grow. We are designing more ads and selling events featuring our private label line.”
• “Upgraded tech to establish when/where/why our private/store brands can/will be able to drive sales.”
