Renewed Focus on Private Label

Renewed Focus on Private Label

February 10, 2021
Annette Maggi
Business Skills

By RDBA Executive Director Annette Maggi, MS, RDN, LD, FAND

Owned brands are more important today than they ever have been, for both retailers and consumers. As assortment breadth has narrowed, driven by the pandemic driving more streamlined production, owned brands allow retailers to be less dependent on national brands and focus on a smaller number of SKUs with higher sell-through rates. E-commerce shoppers are looking for this narrowed focus to make their online process easier. With control over product cost and quality, retailers are revisiting the offerings to make sure they meet the expectations of the rising number of budget-conscious consumers. While historically, private label just offered carbon copies of nationally branded products, today they include trend setting ingredients and flavor profiles, addressing shoppers’ recipe fatigue and hunt for something new to try.

Ranging from 15-20 percent of sales at a typical grocery retailer, private label is an important part of the business, and for this reason, should be a central focus in retail RD programs and promotions. Early in this new year is the perfect time to address whether owned brands are a high enough priority in your offerings, and if not, to readjust your healthy living strategies to include a renewed focus on these product lines. As you do so, consider these previous RDBA articles on owned brands:

Private Label Brands: Business Overview 

Private Label Brands: Integration for Success in Retail H&W Programs  

Are you Doing Enough to Promote Private Label?