The trend: Private label brands are offering retailers an opportunity to appeal to US consumers who are feeling squeezed by rising gasoline and food prices and looking for value.
The opportunity: Inflation, which grew 8.3% in April, is having a noticeable impact on consumers’ wallets.
Better margins: Private label brands help boost retailers’ bottom lines and give them control over the price, product cost, and marketing of the brands.
The challenge: BJ’s has long carried a smaller assortment of SKUs than its competitors, which enabled it to benefit from consumers’ shift to private label products.
The big takeaway: Amid a challenging and competitive retail environment, private labels can help retailers demonstrate value to new and existing consumers.