Private label does its share to drive sales, traffic

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Private label does its share to drive sales, traffic

By Dan Ochwat - 04/17/2020

In a survey of c-suite level executives at national grocery stores, more than half said private label is a category “most successful at generating sales,” while over a third said their store brands “drive traffic.”

The survey, conducted by sister publication Progressive Grocer as part of its annual report — the 87th in its illustrious history — showed how private label stacked up against other areas of the grocery store. While 51% of respondents said store brands are most successful at driving sales, several other departments also were noted as major sales drivers, including meat (68%), frozen foods (63%), bakery (61%) and then deli, liquor and seafood departments all came in at 59%. By comparison, as a store offering that drives foot traffic, private label stood out a bit more. For example, whereas 63% of the executives said frozen foods is successful at driving sales, less than a third said it drives traffic. For seafood, it was even less at 17%.

Less impressive for private brands, per the survey, of all departments listed, only 3% of respondents deemed private label as the “most influential” in terms of driving the store’s overall brand image and point of differentiation. The meat category lead with 28% of the vote and produce at 25%.

For more on these results, go to part four of the publication’s five-part series in its 87th Annual Report.