Private labels in European food retail continue to gain presence. Once viewed by consumers as a cheap, and not desirable, alternative to the genuine product it seems now that they are increasingly wanting to take advantage of the competitive prices on offer. Retail analysts suggest that 8 out of 10 consumers currently believe private label goods to be of equal quality to national brands. This is good news for the retailers who, on overage, make 10% more profit on private label brands than on those ascribed directly to the manufacturer or producer.
The losers in all this are often the producers themselves, including growers, who have to compete for market share against their own customer – the retailer.
Analysts predict the trend will continue over the next 3 years at the very minimum, with an expected growth of up to 23% during the period. The greatest amounts of private label business is currently being conducted by Walmart, Aldi, Costco and Supervalu amongst others.
Source: Fresh Plaza – Consumer Confidence in Private Labels at all Time High