Store Brands Grow Faster at Specialty Grocers
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
According to the report, private label dollar sales grew to
$87 billion last year with store brands accounting for 17 percent of all food
and beverages sold at retail. That 17 percent figure was up from 14 percent
at the beginning of 2005.
Private label sales grew at an annual compound rate
of 14 percent between 2005 and 2009 in specialty grocers. Sales grew nine
percent in club stores and four percent at traditional food retailers over
the same period.
Montuori, publisher of Packaged Facts, said, “Private labels entered
into new territory where the additional power of the retailer name and its
inherent benefits are aiding private labels to emerge as brand name. Store
reputation alone may be the driving force in the success of chains, such as
Trader Joe’s and Whole Food Markets, in attracting more affluent consumers
to the category.”
Discussion Questions: How effective are traditional supermarkets at private
label brand building? What lessons should traditional grocers take from the
growth of private label foods and beverages at chains such as Trader Joe’s
and Whole Foods?
- Traditional Grocery Stores Losing Market Share to Specialty
Retailers in Private Label Food and Beverage Market, Report Finds – Packaged Facts