Article |

Private label growth tied to rise in unemployment?

Investor website, The Money Times, makes a case for linking growth of private label to tough economic times, but will new-found consumer loyalty survive economic recovery?
FILED IN:  Package design  > Structural
As we’ve discussed before, private label is growing, especially in the U.S., with advantages such as lower prices, clever in-store display, and innovative package design for store branding.

The debate continues as to whether this growth will continue or taper off as the recession eases. This article, by Mike Pienciak, cautions investors to watch retailers such as Wal-Mart, Whole Foods and Kroger for their investment potential.

“Already a major force in store brands, Kroger has boosted volume of its own brands by 15% this year, according to a recent AP story. That has helped propel store-brand unit share at Kroger to more than 35%, a record for the company.”

Pienciak makes the same argument we have been hearing for a while. Consumers will be driven to try alternatives to national brands due to “household distress” but will stick because of perceived quality and an emotional bond to the retailer.

This newfound consumer loyalty just might survive an economic recovery.

Get your daily dose of global packaging trends, follow me on Twitter.





Comments(0)

Add new comment

ADVERTISEMENT
E-BOOK SPECIAL REPORT
42 Best Package Designs: 2014 edition
Sign up to receive timely updates from our editors and download this e-book consisting of our editors' picks of most notable package designs. Updated for 2014!
x

 

Newsletters
Don’t miss intelligence crucial to your job and business!
Click on any newsletter to view a sample. Enter your email address below to sign up!
GENERAL INTEREST

New Issue Alert

Packaging World Magazine

eClip

Breaking packaging news

Packaging Insights

Pertinent packaging issues

PACKAGE DESIGN/
DEVELOPMENT

Greener Package

Sustainable packaging

Shelf Impact

Package design strategies

Each newsletter ranges in frequency from once per month to a few times per month at most.