Retailers Large & Small Drive Private Label Growth
Yes, we are already through 25% of 2025. Admittedly, it’s cliche to talk about how time is moving so fast when the reality is that 60 minutes still takes 60 minutes to click on by and a day remains 24 hours.
Perhaps it’s best to talk about pace. The pace of life and the pace at which retailers continue working to boost their assortments of private label products.
Coming off 2024 when store brand sales hit a record high of $271 billion, up 3.9% year-over-year, activity in the first quarter could see this record have a short shelf life.
While the retail world works to navigate the increasingly choppy waters stirred by new policies emanating out of The White House, major chains including Costco, Target, Albertsons, and Kroger have each discussed a desire to continue growing their own brand assortments.
To quickly refresh, Costco has openly shared its efforts to expand Kirkland Signature across the store. Target is teaming with a James Beard Award-winning chef on a new line of frozen pizzas and appetizers, and Albertsons and Kroger each have launched new products. And let’s not forget Aldi and its store growth.
Having major retailers that account for thousands of stores maintain a focus on boosting store brand assortments is great news for the industry.
Even better is the growth in private label products from smaller retailers. Not long after the ball dropped in Times Square, Natural Grocers has been in rapid fire mode launching a host of new store brand products that include but are not limited to soup, pasta sauces, home cleaners, coffee and seafood.
Additionally, Eugene,Ore.-based regional grocer Market of Choice recently debuted its Craft & Kitchen own brand assortment. Products in the line include fruit spreads, honey, milk, eggs, mac & cheese, pasta, tortilla chips, and pasta sauces. The new line is representative of the creativity and uniqueness we see more of in private label.
Products sold under Craft & Kitchen are developed and manufactured in conjunction with local makers in Oregon. Not only is Market of Choice giving its shoppers unique products at a value, the grocer that currently has 11 stores with a 12th on the way, is supporting local businesses across its home state.
The product development efforts of retailers large and small show a continued evolution across private label. No longer is the focus solely on price. Retailers are now utilizing their own brands to be unique, drive innovation, and give their shoppers quality products at a great value.
Let’s see what the rest of the year has to offer.
