Private label (also known as store brand) food sales are on fire—even when they’re frozen goods. Shoppers love the quality and affordability of private label foods. What’s more, 76% of shoppers who try a private label product will also purchase it again on their next purchase, indicating a switch in brand loyalty and preference.
Last year, private label sales accounted for 20.7% of all grocery industry sales, according to the Private Label Manufacturers Association. This $236 billion-dollar-year witnessed a 4.7% increase from 2022. As these private label sales numbers rise, grocers are seeking ways to broaden and elevate their private label offerings in produce, meat, dairy frozen and center store. Use these three tips to keep up with this ongoing consumer trend.
Improve Current Private Label Product Presentation
New private label products are emerging every day. And if customers see them, they may just give them a try. Product presentation is crucial when educating consumers on new (and old) private label offerings. Upgrade your retail merchandising to pusher trays to enable shoppers to quickly and easily compare private label and name brand product sizes and prices. Pusher trays like the SpaceGrid® II can keep products front-facing and organized to allow for faster, more informed buying decisions.
Evaluate Additional Private Label Product Options
In 2023, 80% of industry pros planned to expand their investment and product offerings in the private label space by 2025. This goal can be a moving target as shoppers (and their palates) can change over time. From hot sauce to new beans, food trends can come and go making it hard to stay a step ahead when developing private label products. Store management must collaborate with what they are seeing in-store to help drive innovation with corporate, co-packers and beyond.
Personalized Recommendations for Related Private Label Choices
From in-app deals to personalized coupons, grocers can gather a lot of data from the 64% of grocery shoppers who enroll in loyalty programs. By understanding what customers are already buying, it’s simple to provide targeted deals to encourage them to make the switch from a more expensive brand to a more cost-effective private label choice. And once they make the switch, they’re more likely to make the switch permanent.
For private label and brand-name products, pusher trays from Retail Space Solutions can elevate the in-store experience, promote faster buying decisions and even increase product facing. Request a free online quote using our NEW online quote tool or browse our products to learn more.