IRI hosting webinar covering growth opportunities for store brands on Nov. 30
CHICAGO–(BUSINESS WIRE)–IRI®, which recently merged with The NPD Group to create a leading global technology, analytics and data provider, today released a new report exploring trends in private brand (also referred to as store brand or private label) products, which have not reached their expected growth amid 2022’s economic uncertainties. The report, “Private Brands: Look Who’s Buying Now,” provides an update on the store brand landscape and identifies retailer opportunities to increase demand for their own brand and private brand offerings.
“While consumers have historically navigated to store brand products to save money during challenging economic times, we’re seeing that only modest gains have been made in private brand’s share of the consumer wallet this year,” said Mary Ellen Lynch, principal, Center Store Solutions, IRI. “Retailers must be hyper-focused on understanding their shoppers’ needs and emerging opportunities to spur growth amid modest private brand trends throughout the entire retail landscape.”
Key insights from the report include:
Who Is Buying Private Brand Products?
- Across the total store, 99.7% of U.S. households purchase store brand products, whether intentionally or not.
- Store Brand Loyalists tend to be older, have larger households, are less urban and are homeowners.
- 54% of Store Brand Loyalists have a median household income of less than $70,000.
- SNAP recipients are an important segment of private label shoppers, as 36% of SNAP shoppers will switch to store brands more often.
Which Private Brand Products Are Consumers Buying?
- During the recent inflationary time, store brands increased their share of all-outlet dollar sales to 17.5%.
- Store brand food and beverage products are strengthening dollar share, while nonfood dollar share remains stable.
Where Are Consumers Buying Private Brand Products?
- Consumers increasingly say that store brands influence where they choose to shop; 35% of consumers frequently or always choose a retailer based on the selection of store brand products, up 2% from 2021.
- Both club and mass channels are gaining more than their fair share of consumer spending on nonedible store brand products.
Opportunities for Private Brand Growth
- Retailers can appeal to and capture younger shoppers by offering more options for convenience, healthy attributes and flavor adventure in private brand products.
- Retailers should support store brands in a similar fashion to name brands with a commitment to brand development, production, packaging, promotions, placement and pricing.
- Retailers can leverage trust in their most popular products to encourage trial of other store brand options.
IRI’s Mary Ellen Lynch will cover the new private brands report in a webinar tomorrow, Nov. 30, at 1 p.m. CT. The free webinar will explore trends in private brands by category and suggest strategies for building private brand programs, both now and in the future. To register today, visit here.
About IRI
IRI unifies technology, analytics and data to reinvent how people and companies make decisions, take action and optimize performance. With the largest repository of purchase, media, social, causal and loyalty data, all integrated into an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their quests to capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.
Contacts
Shelley Hughes
Email: Shelley.Hughes@IRIworldwide.com
Phone: (312) 731-1782