JC Lupis | Marketing Charts | Thu, 20 Jul 2017 13:00:03 +0000

More than 8 in 10 American adults plan to buy private label in order to save money, according to recent research from IRI. Recent data from Nielsen [download page] indicates that some FMCG channels are benefiting more from private label than others.

Overall, store brands accounted for 20% of FMCG dollar sales across channels during the 52-week period ending in April 29th, per Nielsen’s report.

Store brand share was far higher in the Value Grocery channel, however, where private label items constituted almost half (49%) of dollar sales. Moreover, Nielsen notes that average store brand per trip at the Value Grocery channel has increased by 1% over the past year.

By contrast, per-trip spending on store brands declined for the Conventional Grocery channel. Within that channel, store brands account for 21% share of dollar sales, according to the report.

Store brands have less of a role to play for Mass Merchandisers (15% dollar share) and for Dollar Stores (17% share).

Still, Nielsen touts the importance of store brands, noting that “those retailers that are able to instill their retail brand promise on their own store brand, and merchandise it equally effectively alongside national brands are winning share.”

Worth noting is that as Amazon invests in its own private label products, Alexa appears more likely to recommend those products than traditional brands, according to L2 Research.

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