Oreo or generic?
For decades, the answer was a no-brainer, even if shoppers couldn’t afford the big-name brand, they preferred it. But that’s changed. Now retailers know they need a smart private brand strategy—especially in the Covid-19 era.
Private label sales have been growing faster than national brands for several years, but the pandemic has goosed that trend. In the first quarter of 2020, U.S. private brand sales jumped 14.6% year-over-year, besting name brands’ 11.5% growth in the quarter, and far outpacing the 4.1% sales increase private brands scored in 2019.Retailers have their own reasons for liking private brands—also called house brands, store brands, private label and owned brands.