Retailers to Expand Second-Tier Private Labels, Says Study
February 22, 2012 at 9:50 AM
February 2, 2012
More retailers are implementing and expanding economy and second-tier private label options, according to the report “The Times They Are A-Changing: 12 Trends for 2012” released Jan. 31 by Barrington, Ill.-based research firm Willard Bishop.
“These items are designed to appeal to the specifications buyer who is looking for the least expensive option in selected categories. It’s also a way for supermarkets to compete against limited-assortment stores such as Aldi and Save-A-Lot that target the price-conscious/specification shopper.
“And retailers who have expanded their second-tier assortments report that they’re selling more of it than they had anticipated, while undoubtedly preventing shopping trips to other stores/formats. We expect to see second-tier private label brands such as Kroger Value, AWG’s Always Save, and Topco’s ValuTime and Clear Value in more shoppers’ baskets this year,” writes Jon Hauptman, a partner at Willard Bishop and author of the report.
Other trends predicted include retailers making use of smaller stores, driving incremental volume with more promotions, and a better managing end-caps to maximize returns.