Gone are the days when stores merely created generics or cheap knock-offs of leading brands, instead these retailers are developing products that offer premium ingredients like organics, attractive packaging and some new items that don’t even have direct challengers in their space. Grocers have also realized that this one more way to leverage the relationship they’ve established with their customers, who in most cases will be shopping at their stores regardless of whether or not store brands are being offered. NY Times explains:
‘Besides the weak economy, the growth of store brands reflects a historic shift in the balance of power between packaged food manufacturers and grocery retailers. As grocery chains have consolidated and grown bigger, they are increasingly able to stock their shelves with their own products, which bring higher profits and drive customer loyalty — all to the detriment of major food brands.’
NY Times: Store Brands Lift Grocers in Troubled Times’
>> find the Retailization executive summary here.
