NORRISTOWN, Pa. -- Genuardi Super Markets here has tapped a private-label management company to expand its line of corporate brand products.
Currently, Genuardi has a modest program of 150 private-label stockkeeping units, according to Frank Puleo, director of nonperishables merchandising. The 27-store chain plans to expand the line to 850 to 1,000 items with the help of Marketing Management Inc., Fort Worth, Texas.
Crossing all categories, the new products are being added to reflect the consumer's growing confidence in the quality of store brand products, he said.
"Private label is gaining an improved reputation with quality and, to our customers, the name Genuardi's is synonymous with quality," said Puleo. "So, we feel consumers would benefit by having a product line like this in our stores. They would get the same quality as the national brands, but pay at private-label prices."
The new grocery items will carry the Genuardi label and are not expected to be positioned as premium products, a la President's Choice.
The current private-label lineup consists primarily of commodity type items, such as bread crumbs, sugar, milk, butter and cheese. The chain pulled in MMI because of its expertise in managing more diverse programs.
"We want to be widely represented across all categories," Puleo explained. "And, in order to do that, we felt we had to have a little assistance from a professional management company.