Private label brands have taken on increasing importance in retailers’ arsenals on the heels of positive consumer sentiment. This report looks at how retailers can use store brands to bolster their product assortment and thus increase their margins.

CPG brands are struggling to compete with private labels: As the industry reaches a "breaking point," companies like Procter & Gamble are shifting tactics to appeal to price-conscious consumers.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss the advantages of private label brands and what they need to do to succeed moving forward. Then for "Pop-Up Rankings," we rank the top five private label brands with the cultiest followings. Join our analyst Sara Lebow as she hosts analyst Suzy Davidkhanian.

Consumers are trading down to private label brands: That presents an opportunity for retailers such as BJ’s Wholesale Club to use their own brands to demonstrate value and build loyalty.

Bed Bath & Beyond’s early-pandemic inventory revamp had unforeseen consequences: The decision to reduce its in-store SKU count and launch private-label brands left the retailer vulnerable to supply chain disruptions.

Private labels are winning over consumers with good value for the money. Among US adults, 89.7% said they switched from a national label mainly because the store brand offered better value, and 47.9% said deals and/or membership rewards motivated the move. Meanwhile, 52.0% cited the private-label brand’s bigger selection of products.

Capital One already issues the private-label Kohl’s Card and will pilot a co-brand program in early 2023.

For private label brands and direct-to-consumer companies, this trend presents an opportunity to draw in cost-conscious shoppers—but brands will have to market beyond price to keep them. More like this:. Report: Spotlight on Private Label Brands 2022. Audio: Reimagining Retail: Can private label brands inspire a cult-like following?

Article: CPG brands lose market share to private labels as consumers focus on the price tag. Article: The top reasons consumers switch brands.

Faced with higher prices, consumers are turning to private-label brands to save money. That bodes ill for Kellogg Co.’s cereal business, which will have even less ability to withstand higher costs once it can no longer rely on support from higher-margin product lines.

Redefining the in-store experience: Another prong of Amazon’s fashion expansion is Amazon Style, its brick-and-mortar clothing initiative that features apparel from brands like Levi’s and Theory, as well as private label products.

For retailers with private label products, we anticipate shoppers’ ongoing willingness to experiment is a chance to woo them with higher-margin, value-driven private label alternatives. Consumers and companies aren’t just anxious about what’s happening in the US. Supply chain distress has been exacerbated by the war in Ukraine.

The big takeaway: Consumers might be moving to private label brands for groceries and other essentials, but the strong performance of brands like Levi’s and Nike shows that plenty of shoppers are willing to pay higher prices for premium items.

The average annual grocery bill is set to grow by £380 ($523), per Kantar, driving many shoppers to cut back on purchases and opt for budget labels over name brands. Approximately 1.2 million households have food and energy bills that exceed their income, per the National Institute for Economic and Social Research.

US players are taking similar tactics: Gopuff is turning to prepared food, Gorillas announced it would launch private label products, and DoorDash and Instacart are offering their delivery services to non-food retailers.

For example, 41.1% of consumers switched to a private label brand, because a national brand was not available, according to a March 2022 survey conducted by Bizrate Insights. Amazon, Meta, Alphabet, Netflix, and others have stumbled in their business results, and trends look concerning. This webinar covers:.

Article: Private labels help retailers like BJ’s Wholesale Club appeal to value-oriented shoppers.

Private-label brands are a net winner. Almost half (43%) of US adults reported buying generic products to save on grocery bills in early May 2022—up from 36% in October 2021. Brand loyalty is fizzling. Consumers are switching brands and retailers at higher rates than in 2020 and 2021, per McKinsey.