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Consumer Confidence
Nearly two-thirds (62%) of consumers frequently buy store brands, according to a new Private Label Manufacturers Association study conducted by GfK/Roper for publication in SN. That's an increase from the 41% who said they buy store brands in a 2006 PLMA study, and 12% in a 1991 PLMA study. PLMA President Brian Sharoff attributes the high percentage in part to the economic downturn. Sharoff said he's
Carol Angrisani
January 26, 2009
3 Min Read
CAROL ANGRISANI
Nearly two-thirds (62%) of consumers frequently buy store brands, according to a new Private Label Manufacturers Association study conducted by GfK/Roper for publication in SN.
Select chart to enlarge.
That's an increase from the 41% who said they buy store brands “frequently” in a 2006 PLMA study, and 12% in a 1991 PLMA study.
PLMA President Brian Sharoff attributes the high percentage in part to the economic downturn. Sharoff said he's surprised at how quickly the recession has impacted shopping habits. “Recession psychology has definitely taken hold, and it will not recede overnight,” he told SN.
The results are based on 1,004 telephone interviews conducted Dec. 5-7, 2008, by Omnitel, a weekly national telephone omnibus service of GfK/Roper Custom Research North America.
All respondents described themselves as the primary grocery shopper in the household. Adult females accounted for 526 responses; males, 478.
Select chart to enlarge.
Along with the economy, Sharoff attributed strong consumer confidence in private label to aggressive store-brand strategies on the part of many major retailers.
Nearly 80% of respondents from the highest income group — those earning in excess of $75,000 — said the store brands at their preferred retailer are better than those at other stores.
“This indicates a level of store loyalty that retailers have long sought to achieve,” Sharoff said.
Among other findings in the study:
The youngest demographic group — those ages 18 to 24 — yielded the highest percentage (70%) of frequent store-brand shoppers.
Nearly one-third of all respondents reported that more than 40% of their regular shopping basket consists of store brands. Another 25% said more than 20% of their regular purchase is store brands.
Just 3% of all shoppers in the study said they “never” buy store brands. That's down from PLMA's 2006 study, when the figure for “never” was 5%.
None of the 18- to 24-year-olds surveyed by GfK/Roper said they “never” buy store brands. That's a significant change from the late 1980s, widely known as the early days of private-label growth, when the percentage was well over 25%.
“That it has shrunk so drastically indicates that retailers have been successful in promoting their own brands,” Sharoff said.
Eighty-two percent of respondents said they “agree” that store brands are better than or as good as the national brands. That's up from 66% who said the same in PLMA's 2006 survey.
Nearly one-third (29%) said they are buying more store-brand products today than a year ago, compared with 22% who said the same in 2006. The largest percentage of those who said they are buying more store brands today than a year ago (38%) were in the 25-34 age group.
About 70% of the respondents said that current economic conditions are important to them in making a decision to buy store brands.
Looking to the future, about 20% said they will be purchasing more store brands in the year ahead. More than one-quarter of those in the 35-49 age group said they expect to be buying more store brands. The percentage was 15% in 2006.
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