Anne Bieler

Store Brands Grow Faster at Specialty Grocers

August 3, 2010

FROM RETAILWIRE:
Private label sales grew faster in specialty food stores such as Trader Joe's and Whole Foods than at supermarkets between 2005 and 2009, according to the Private Label Food and Beverage in the U.S. report by Packaged Facts. How effective are traditional supermarkets at private label brand building?      [more...]

Specialty retailers like TJ's and Whole Foods have built a very loyal base of shoppers. "Their" stores know who they are, what they like, and deliver. Private brands allow for exploration and development of unique products that meet local needs and aspirations. By continually refreshing the offering, shoppers keep coming back.

Private label started as a lower-cost alternative backed by the store "name." Traditional retailers have moved far beyond this basic tier, to a multi-tier approach, and some into exclusivity. Interesting, innovative, premium, and good-value alternatives are becoming part of the portfolios of many supermarkets.

The game has changed, and traditional retailers have their own brand marketing groups. Retailers like Safeway have taken over these functions, previously handled by others. Food retailers are actively hiring account executives who once worked for CPG companies as well as many of the brand designers and package developers.

The new private brands have very well designed packaging--both functionally and graphically--that enables strong differentiation at shelf and promotes a connection with the consumers.