Mixed Success for Private Label Brands
Lower-priced private-label brands have been a mainstay of large U.S. grocery chains for years. Private labels have become even more popular over the past two years owing to large increases in food prices.
As a result, U.S. grocery store brand sales in 2022 rose 11.3%, almost double the growth of national brands, according to the Private Label Manufacturer’s Association.
Private-label goods are also popular in Europe, especially for groceries. In Western Europe, private labels have a penetration rate of 40%, with Central and Eastern Europe coming in at 30%, according to Statista. Shoppers in the U.K. are particularly avid private-label purchasers.
But consumers’ acceptance of store-brand groceries does not translate to other retail products. Quality, or the perception of quality, matters for those items.
Following are stories of retailer success and failure.
The retail behemoth has been selling private label brands, mostly in its grocery line, for over 30 years. Great Value (household essentials) and Equate (health and personal care) are two of its most popular. It also sells a robust selection of apparel, toys, and other items.
All told, Walmart has roughly 300 private label brands across 20 categories and 29,000 products, including:
- Mainstays. Bedding, kitchen utensils, home furnishings.
- Time and Tru. Women’s clothing, shoes, accessories.
- Wonder Nation. Infants, toddlers, older kids.
- Home Trends. Furniture, appliances, home décor.
- EverStart. Batteries and accessories from Johnson Controls and sold only at Walmart.
Estimates vary widely on the number of Amazon’s private-label products. In response to questions from a Congressional committee in 2019, Amazon revealed it offered 158,000 private-label products.
Earlier this month, EcomCrew, a podcast and blog, estimated Amazon had 88 in-house brands. Amazon Basics account for about 58% of all…