W. Frank Dell II, CMC

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...]

To say Private Label grew at Trader Joe's is meaningless, as the chain has always been 99% Private Label.

Specialty retailers approach the issue of product selection differently than the traditional supermarket. They are not are not trying to cover all categories, only the ones that support their vision. They have more difficulty finding products than the traditional supermarket due to CPG companies manufacturing for the mass market. This gave the specialty retailers a head start on developing Private Label.

The more enlightened supermarket chains are making solid progress, but they have to overcome the branded product deal addiction.