Target, Aldi among fastest growing private labels, report says
- According to a new numerator ratio.
- Walmart dominates household penetration, according to the report. Among the top 15 brands by household penetration, Walmart was in the top four in a row – Great Value (72.7%), Equate (51%), Marketside (44.2%) and Freshness Guaranteed (40%) – followed by Dollar Tree, Kroger and Aldi, with penetrations just above 30%.
- Examining perceptions across income groups, Numerator found that high-income shoppers had the most favorable view of private label – a surprising finding given private label have long been valued as a cheaper alternative to national brands.
Overview of the dive:
Numerator’s private label report comes at a time when high inflation and rising food prices are prompting consumers to cut prices and switch from national brands to store brands.
In the second quarter, private label accounted for 32.1% of sales in the club channel, nearly double their prevalence in the grocery channel at 17.4%. Private label share for this quarter versus a year ago increased by less than 0.2% in mass and online channels, to 22.6% and 20.2%, respectively.
Among the retailer-specific findings, Numerator shed additional light on Amazon’s own brands. While the online retail giant has a higher share of private label in consumer electronics and housewares, its share among grocery, household, and health and beauty products is only 3%, Numerator found. Meanwhile, private labels account for 14.7% of sales for its Whole Foods Market banner.
The Numerator listed the Amazon Basics range, which includes household essentials like bedding, office supplies, kitchen utensils and fitness equipment, as the third fastest growing private label brand in terms of household penetration in the world. second trimester compared to a year ago, behind Target’s Favorite Day and Aldi.
By examining private label trends across channels, retailers, consumer groups and product types, Numerator found that consumer sentiment towards private label value for money was consistent these years, 55% of consumers surveyed said the value was “excellent or above average”. ”
Among different income groups, it’s no surprise that more and more shoppers, regardless of income, are increasingly saying that price is more important than brand name, because inflation has skyrocketed in recent months. While low-income shoppers consistently said price trumps brand name more than middle- and high-income shoppers, this same group was less likely to say the desire to save money money motivates private label purchase and is also less likely to agree that private label quality has improved over time.
More and more middle- and upper-income consumers are buying private label products as a cost-cutting measure, according to the report.
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