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Two-thirds of consumers plan to purchase private label more frequently in the coming six months. Private brands claimed However, 31 percent of U. Delhaize is setting the bar high, and there's a risk involved because U. As grocers place increasing emphasis on high-growth, high-margin perimeter categories, private labels are following suit as a way to generate higher returns in an industry notorious for operating on razor-thin margins. But, the market is transforming quickly, as assortment becomes broader and more targeted and new players enter the marketplace.

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That rapid pace of growth will impact all its banners, which include Food Lion and Hannaford. By , major private label players Aldi and Lidl could have a combined 10 percent of grocery share. The grocery landscape is rife with examples of supermarkets investing in their private label programs. Costco is focused on driving private label penetration from the current rate of about 25 percent of sales to 37 percent of sales.

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The new report by Cadent Consulting now predicts explosive growth in the segment over the coming decade. A lot has been made about the increasing sophistication of private labels in grocery departments. Unit sales are also struggling. Jet hopes Uniquely J can give it an edge over Amazon, which has slowly grown its own assortment of grocery lines, including Happy Belly and Wickedly Prime.

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Description: Time will tell if years of economic challenges have changed the private-label mindset of American consumers. Two-thirds of consumers plan to purchase private label more frequently in the coming six months. Private label sales are also expected to surge as Aldi and Lidl aggressively expand their footprints nationwide. It recently introduced private brand Uniquely J with edgy packaging and products aimed at urban millennials. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5, clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. The focus is on Kirkland Signature natural and organic products and increased scope of co-branded products. Aldi is increasing its U. What's driving this growth. Within the grocery channel, private label dollar sales have fallen 1.
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