Private Label Holds Untapped Potential for Supermarkets

CHICAGO - Private-label food and health and beauty care products hold tremendous untapped potential for supermarkets, according to a new study released by Information Resources Inc. last week. Researchers said that private label‘s overall share has remained stagnant over the past three years, at 16% of dollars. This in spite of the fact that more than two-thirds of low, medium and heavy private-label consumers consider these products as “excellent quality.” To increase sales in lagging categories, the study recommends a multi-tier approach that incorporates market research, innovation, quality packaging, and marketing to young couples and families, who represent the most promising demographics for private label. “Now more than ever, more than price is defining what a private label‘s place in the marketplace is,” said Sean Seitzinger, head of IRI‘s Center For Retail Innovation. “And that‘s challenging both retailers and manufacturers to rethink what the value proposition is in each of their categories.” Jeff Wells