Thursday, October 27, 2011

Grocery Stores Go Head-to-Head With Popular Name Brands

With the economy sputtering, grocery stores have continued to expand their private-label offerings to take business away from more expensive brands.

"There's a lot of competition going on between national brand and private brands to recapture their customer base," said Bill Bradshaw of Buxton, a leading retail industry research company.

He said private-label manufacturing is exploding because of the economy and product improvements.
"The quality has become so much better over the years, and once you get people to try the product, they understand that the quality is just as good, but it's less cost," Bradshaw said.

He said many domestic grocers are eying how European groceries have created specialty lines.

"They have about 40, 45 percent of market share compared to private-label penetration here in the U.S., which is about 20 percent," he said.

Private labels represent one of the largest long term threats to national brands. Read more of this report here.