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Private Label Needs Greater Focus, Consultant Says

CHICAGO - Challenges facing the $45 billion private-label industry were addressed here Sunday by Terry Lee, industry consultant and former vice president of corporate brands for Albertsons and Safeway, at the Private Label Manufacturers Association trade show.

CHICAGO - Challenges facing the $45 billion private-label industry were addressed here Sunday by Terry Lee, industry consultant and former vice president of corporate brands for Albertsons and Safeway, at the Private Label Manufacturers Association trade show. “You have control of the ads, shelves and displays in your stores, so why aren‘t we seeing more of a private-label focus?” Lee asked retailer attendees. “A big issue today is that businesses are so structured around trade promotion allowances and slotting fees. Retailers are so quick to sell everything to the highest bidder and then whatever is left goes to private label.” Lee described growth in private-label dollar share vs. that of national brands as “flat as the Midwest plains that I flew over to get here. Fundamentally, unit sales are also flat.” Low private-label prices and the image of poor quality that they enforce are stagnating growth, he said. Julie Gallagher