Supermarket Perimeter - February 2024 - 46

Deli
STORE
BRANDS
AS ECONOMIC CONDITIONS THE LAST FEW YEARS HAVE LED
MORE SHOPPERS TO TRY OUT PRIVATE LABEL PRODUCTS, many
grocery retail store brands have increasingly gained repeat sales, brand
recognition and trust from consumers.
According to data from Circana, dollar sales of private labels grew
8.3% in the first half of 2023 ended June 25, and dollar share rose to a
record high of 18%. Unit sales decreased 1.2%, but unit share reached
a high of 22.5%. Natural cheese was identified as one of the top three
categories generating private label sales at $970 million.
FMI - The Food Industry Association's " Power of Private Brands 2023 "
report found that 95% of shoppers say they are buying private brands
occasionally, and 46% say they are buying store brand items " most or all
of the time. "
" Shoppers are definitely more upbeat about private brands, " FMI said.
" The feedback indicates that accelerated private brand trial during the
COVID-19 pandemic is having enduring positive impacts. "
The report found that just within the last 12 months, 61% of
consumers said they purchased more store brands, and only 26% said
they bought more name brand products in 2023 than before.
" Much of the private brand growth is likely due to inflation and the
challenging economic landscape, " FMI said. " However, the gains are
also about more than just price. Consumer trial of private brands has
Making private label
premium and preferred
By Hayley Hyer
increased considerably since the pandemic began, and many shoppers
relay positive perspectives about these brands. "
As for 2024, 54% of consumers said they expect to buy private brands
somewhat or much more, and 90% said they are somewhat or very
likely to keep buying private labels even if grocery prices decline. Only
26% of consumers said they expect to buy more name brands.
" Price remains an important purchase driver, but shopper
decisions about private brands go well beyond price, " FMI said. " It
will be important for the food industry to drive further private brand
trial, convert more shoppers to frequent private brand buyers and
understand changing shopper notions of value. "
Store brands gain recognition
Many consumers buying store brands have shopped around and tried
private label products from a variety of grocery retailers.
FMI found that beyond price and value, consumers are now
recognizing differences in quality and taste across different store brands
and are developing preferences for certain retailers' brands over others.
More than half of consumers (53%) said private label offerings are very
or extremely important in determining where they shop, compared to
35% in 2016 and 46% in 2019.
As private label sales continue to grow, retailers are putting
more effort into marketing their store brands and giving them
personality.
Many retailers have even divided up their store brands to
market some as premium or exclusive to specific departments.
One example is Bentonville, Ark.-based Walmart Inc., which
has many different store brands for different purposes.
Walmart's Great Value brand is featured across all
departments and usually offers the
store's lowest prices.
In the deli department, as of
Walmart's
Marketside store
brand offers specialty
products for a
lower price than
name brands.
January 2024, the Great Value
Honey Ham Lunchmeat is priced
at $6.20 per pound for a 9-ounce
plastic tub and $4.78 per pound for
a 16-ounce family pack. Walmart
also has the Prima Della private
brand exclusively for premium deli
meats and cheeses. Prima Della's
Honey Ham, Deli Sliced is priced
higher at $8.77 per pound. For deli
cheese, Walmart's Great Value Deli
46 - FEBRUARY 2024
supermarketperimeter.com
Walmart
http://www.supermarketperimeter.com
Supermarket Perimeter - February 2024

Table of Contents for the Digital Edition of Supermarket Perimeter - February 2024
