STORES ENJOY MORE PUBLIC PURCHASES OF PRIVATE LABEL

BARBARA MURRAY

NEW YORK -- The growth in the annual Private Label Manufacturers' trade show has paralleled the rise in prominence of private-label goods over the past 20 years. As Brian Sharoff, president of the Private Label Manufacturers Association here, said on the eve of the PLMA's 20th show, "private label is a major part of almost every retailer's strategy." Store brands now account for one of every five items sold every day in U.S. supermarkets, drug chains and mass merchandisers. They represent a nearly $50 billion segment of the retailing business that is achieving new levels of growth every year.

A wide cross section of people will attend the show, including about 2,000 retailers. "Starting about two years ago, we've seen a big representation of Latin American retailers," Sharoff said. "They are locked in a very severe battle, and private label works very well for them."

Last year, at the request of retailers, the PLMA started a perishables section, which has expanded this year to about 175 units of exhibit space. New Center Store items will include green ketchup.

Sharoff said there will be some good examples of retailers who have taken the first step with a product, being innovative rather than imitative.

"In Center Store, that really is crucial to the success of private label. Center Store is flat in sales in many ways. For private label to do better, it has to try harder, be a little more innovative," said Sharoff.

Segments of Center Store that are "hot," where private label's growth is outperforming the category, include croutons, shortening and oil, pasta sauce, sugar substitutes, Oriental food, mayonnaise, tomato products, Mexican sauce and baby formula, according to statistics from the PLMA.

The PLMA's Salute to Excellence will be presented to those retailers who do the best promoting of their in-house programs. Past winners in the supermarket division have included Price Chopper, Genuardi's, Safeway, Kroger, Shaw's Supermarkets and the H.E. Butt Grocery Co.