There is no doubt that U.S. store brands benefited greatly from the Great Recession of 2008-2009. The quality of today’s store brand offerings coupled with more value-conscious consumers looking to stretch their dollars ignited a sales boom. In the U.S., private label sales increased 1.8 share points from the end of 2007 to the end of 2008 to reach a 22.3 percent market share.

Three-quarters of U.S. households believe store brands are a good alternative to name brands and nearly two-thirds of households say that store brand quality is just as good as name brands.

2009 was a big year for Private Label. To keep the momentum growing, closing the price gap between branded and store brands by one cent could yield up to $400 million in incremental annual unit sales.

When store brands were in their infancy in the 1980s, product quality was inconsistent and packaging was either generic looking or designed to mimic the leaders in a given product category. It’s a much different story today.

U.S. retailers continue to make progress in offering store brand products with health claims relevant to shoppers looking for healthier food choices

Price is only one of five things consumers look for when shopping. Raising store brand prices by just one cent translates to roughly $400 million dollars in sales across all departments. For U.S. retailers, it begs the question: Is it time for a price hike?

Consumers are continuing to purchase private label products at an increasing rate, according to new research from The Nielsen Company.
The “U.S. Store Brand Development” found that both private label dollar and unit sales significantly increased for the 52-week period ending July 11, 2009 versus the prior year.
Dollar sales grew by 7.4 percent to $85.9 billion within food, drug and mass-merchandisers (including Walmart), with shares recorded at 16.9 percent. This reflects an increase of 0.7 points from the previous year. Growth peaked in 2008 but then slowed slightly in 2009 with …

Store, or private label, brands have seen their popularity grow in the U.S. and Europe as retailers have improved the quality and breadth of offerings to appeal to consumers watching their money more carefully.   Once known for being simply cheaper – and not as good – alternatives to name brands, private label products have been one of the bright spots for retailers in an otherwise gloomy economic environment.  The shift to private label has also attracted Australian consumers, and recent research from The Nielsen Company has found that such products …

Recently, at Nielsen’s Consumer 360 Conference, The Nielsen Company featured a unique exhibit, Consumed: The Economy Hits Home, which looks at how today’s uncertain economy is shaping consumer attitudes and behaviors and how marketers can navigate this new landscape to uncover growth opportunities. Mark Leiter, President, Professional Services, provides a guided video tour.

Read the corresponding presentation: Consumer or Consumed.
More video and presentations available at Consumer360.com.

Todd Hale, Senior Vice President, Consumer & Shopper Insights
Over the latest six (4-week) periods ending 5/16/2009, store brand unit sales averaged a 5.7% increase in consumer-packaged-goods departments tracked by Nielsen in food, drug and mass-merchandisers (including Walmart).  Most of this growth is from edible departments (i.e., fresh meat, fresh produce, packaged meat, dairy, dry grocery, frozen and deli).  While branded unit sales declined, on average by 3.1%, unit sales in the last two periods were up 2.2% and off 1%, respectively.  While this is not a definitive sign that brands are turning the …