Retailers have seen substantial growth to their own-brand products over the course of the economic downturn, prompting Tesco, Carrefour, Metro and others to take advantage of the opportunity and launch their own value brands. While that upward trajectory is expected to flatten out, many of those consumers that did make the shift likely will continue to buy own-brand goods, according to Verdict Research.
High gas and food prices are changing customers' shopping habits as they hunt for bargains, buy in bulk and stick to store brands. Discount chains are benefiting from this change as customers stock up on bulk meats and food storage bags at places such as Wal-Mart.
Meijer and Publix are both working with Produce for Kids to help encourage children to eat more fresh produce. Meijer hosted educational events in parks this summer, while Publix held in-store presentations that taught children and parents how to cook healthy foods.
Safeway's private label brands O Organics and Eating Right, which the retailer expects to sell in rival grocery stores, have broken the mold of private label. The company markets and advertises the brands as stand-alone entities, rather than as alternatives to established brands.
Save-A-Lot is experiencing sales growth by offering a basic, no-frills approach to grocery shopping. The store uses a limited inventory that lures bargain shoppers and other consumers affected by high gas and food prices.