Double-digit growth of private label continues into Q1

Store brands continue to outperform national brands in sales. Across all U.S. grocery channels, store brand dollar volume jumped 10.3%, nearly twice the gain of national brands (which grew 5.6%), compared to the same three-month period a year ago 

Store brand market shares jumped higher. Dollar share rose to 19.1% and unit share advanced to 20.8% vs. Q1 of last year when the numbers were 18.5% for dollars and 20.3% for units

Store brands fared significantly better than national brands in unit sales, as well. As was the case last year, all brands shed units. But like in 2022, store brand units decreased far less than those of national brands. During Q1 of 2023, they were off 1% vs. minus 3.9% for national brands, about one-fourth the decline

This disparity in unit sales can be attributed to consumers switching to store brands from national brands. It was even more pronounced in March, when store brands were down only 0.7% compared to national brands, which were off five times that figure at 3.5%

Among the 17 food and non-food departments Circana tracks for PLMA, 15 saw increased store brand dollar sales during the first quarter. Double-digit gainers were beverages (up 17.1%), bakery ( 16.8%), general food ( 16%), refrigerated ( 15.5%), floral ( 13.1%), deli prepared ( 12.4%) and health care ( 10%)

Other departmental winners included deli cheese (up 9%), general merchandise ( 8.8%), beauty ( 7.4%), frozen ( 7.1%), produce ( 6.8%), deli meat and liquor (both at 5.8%), and health ( 4.3%). Only tobacco (off 11.8%) and meat (down 1.6%) slipped

Looking at store brand unit sales, six departments improved, led by floral (up 5%), deli prepared ( 2.1%), bakery ( 1.8%), general merchandise ( 1.3%), produce ( 0.8%), and liquor ( 0.7%)