Save A Lot Building Off Strong Private Label Foundation
Private label products are a cornerstone of Save A Lot's strategy, offering an advantage in the current economic climate. According to Sally Fatzinger, vice president of Center Store for Save A Lot, the company's approach to private label is deeply rooted in its mission to provide both value and quality.
This isn't a new focus for Save A Lot; rather, private labels are part of the foundation of its business. The retailer is actively working to expand its store brand offerings, developing new messaging and extending assortments into diverse categories to meet evolving consumer needs.
At the heart of Save A Lot's private label mission lies a commitment to accessible, high-quality products. Fatzinger emphasizes the extensive effort put into ensuring that every private label item delivers the best possible value without compromising on quality. This dedication extends beyond the product itself to encompass packaging and presentation, all designed to resonate with consumers.
With approximately 55 standalone private brands across various categories, Save A Lot has successfully built a portfolio of trusted names for its customers. These brands aim to provide a "branded experience," offering premium value that shoppers recognize. Recently, Fatzinger spoke with Store Brands to provide an update on the grocer’s private label efforts and what the future holds for the company’s store brands.
STORE BRANDS: Currently at Save A Lot, what role is private label playing across the company?
SALLY FATZINGER: Private label is a huge topic, particularly in the current macroeconomic environment. A lot of retailers are turning toward private label as an opportunity and an area for growth. Since private label is something that is not new to us and is the foundation of where our company started, it really gives us a unique opportunity. It’s an exciting time for us to grow and develop messaging while expanding our assortments into different areas.
SB: How does expanding Save A Lot’s private label assortment play into its mission?
SF: Our core mission when it comes to private label is two things. One, it’s the value and quality equation that goes hand-in-hand. It’s our mission to get the best possible value on the products we have, but we do not sacrifice on quality to meet that goal. For that value proposition, we spend countless hours as we think about products and the quality of those items. But it's not only what’s in the product itself, but also in the packaging and the presentation of that item, and how we message it to our consumers. That is at the heart of what we do and how we're approaching and thinking about private label within our assortment today. We want to make sure our customers have access to high-quality products regardless of their economic status or demographics.
SB: What categories is Save A Lot focused on when it comes to new product development?
SF: There are a lot of opportunities, and we are seeing a lot of momentum in where the gap between national brands and private label exists. A category such as salty snacks is an area where we look for expansion by adding to flavor profiles in our existing (own) brands. Our J. Higgs own brand, for example, is well-known and the products are high quality and resonate with consumers. We are doing things such as limited-time-only flavor offerings that are rotated throughout the year. It’s a great way to drive innovation in the category and also allow us to offer shoppers newness. We’re also focused on a category such as restaurant-style sauces. This is a big trend, and while we have delved into it as much in the past, it is something that could grow into more of a staple product.
SB: In a category such as restaurant-style sauces, there are a lot of new branded products available, but the prices are noticeably higher than similar private label products. How do you take advantage of that difference?
SF: When the price gap is large, we continue to see a lot of momentum with our private label products. Getting trial and awareness is important from a private label perspective, especially when we kind of delve into new flavor profiles or expansions of some of our brands. As part of that effort, we launched a new loyalty program, and it has been a great way to drive private label awareness. We launched a new label line in our pet food category with seven new SKUs of dry food for cats and dogs. We were able to play up that launch in multiple ways. We used our loyalty app to highlight the new products and give our customers rewards for trying the products. During National Pet Month, we used our Oliver & Scout pet food brand to drive donations across our retail partner network. They are embedded in their communities, and we had a great response for donations. Our approach has to be holistic and be more than just putting new items on the shelf. We don’t just add products to add products. New items have to be meaningful to the category they are in, and they have to resonate with our mission and values.
SB: There has been a lot of private label growth in pets over the past couple of years. While value is important, pet owners also expect the products to be of high quality. How did the Save A Lot team develop its new pet products to meet those needs?
SF: The pet category is very interesting. We’re willing to try new things, but when it comes to our pets, we are very particular about what we feed them. So when developing new products, quality was certainly a big part of our focus. When working on our formulations, it's similar to what we do with our other private label products. With people conscious of what they feed their pets, we have to provide an overall picture that gives our customers confidence in the product we are offering. That includes the product inside the bag to the design of our packaging.
SB: With own brands such as Oliver and Scout in pet, and other private brands across the store, Save A Lot over the years has successfully built a roster of private labels. Why has this strategy worked so well?
SF: We have about 55 standalone brands across multiple categories, and they have become trusted names for our customers. These brands also give our shoppers an experience that feels like a branded experience. They see all the different labels, and they understand they are getting a premium value. And with each of the brands, we’re working to tell a story with each of them and feature them in our weekly ads and on social media. This is all part of our ongoing effort to make our private brands household names and a trusted source for the quality they offer.
SB: As Save A Lot moves forward, what is the vision for its private label assortment?
SF: We are in growth mode and over the past 12 months have introduced around 100 SKUs to our private label assortment in categories across center store. We know private label is a point of differentiation, and this is what is going to set us apart as we move forward. There are several categories where we have an opportunity to expand, and we are focused on continuing to provide the right items at the right price to meet the needs of our customers.
