Maintaining Momentum

Welcome to June and the midway point of 2023.

The first half of the year has been another exciting period for private brands and the momentum from 2022 has carried forward. There comes a point in the retail/consumer goods world when a trend ceases being a trend and becomes a way of doing business. This feels like the case for private brands.

We started the year with retailers talking about opportunity. The opportunity to expand private brand assortments, not only in existing categories, but identifying and taking advantage of opportunities seen in non-consumable categories.

Natural Grocers expanded its private brands selection with a new line of bath salts and foot soaks. Williams-Sonoma launched its GreenRow home goods line with products made from sustainable manufacturing practices. Sam’s Club will soon offer its shoppers a line of apparel under its Member’s Mark brand, which was revealed on the Store Brands Spotlight podcast by Myron Frazier, senior vice president of Private Brands and Sourcing at the retailer.

Additionally, a number of retailers started the year telling Store Brands of their intent to boost their consumer marketing efforts behind their private brands in an effort to highlight the quality and value their products provide consumers. Retailers including Kroger and Whole Foods among others have made good on this promise and are working to position their own brands as national brands.

It appears all this activity has caught the attention of the national brand conglomerates who spent the past couple of years dismissing – at least publicly – the growth of private brands. A survey conducted in March by Advantage Solutions revealed that only 28% of product manufacturers said they plan list price increases over the next six months. In December, that number was 46%. Additionally, 35% in March said they will not increase prices, up from 28% just four months earlier.

Clearly, the branded side of the consumer products world is coming to grips with the power of private brands, which really is the power of consumers who are speaking with their wallets. Whether out of necessity or just tired of overpaying for products, shoppers have discovered private brand items that equal if not exceed their branded counterparts.

The proverbial tree has been shaken. Ongoing innovation will further drive growth and continue to push the market share toward private brands. Keep up the good work!