private brand

SuperValu Consolidates Private-Label Store Brands

Posted by Mark J. Miller on June 20, 2011 05:30 PM

SuperValu, the third-largest food-retailing chain in the U.S., may own a number of grocery chains, but it would like shoppers to start noticing something that is the same about its businesses: the store brand for all of them is the same. 

Owner of such grocery store chains as Albertson’s, Jewel-Osco, and Cub Foods, the Minnesota-based SuperValu is consolidating all of its private-label in-store brands under the name Everyday Essentials and hopes to have the project completed by February, according to the Chicago Tribune.

“The move highlights the ongoing battle for the frugal consumer in the wake of the recession, as well as Supervalu's struggles to stem losses and boost traffic to its traditional groceries, as shoppers increasingly look to Wal-Mart and warehouse club stores for savings,” the Tribune reports.

Because of the recession, private labels such as Everyday Essentials are getting more love from consumers. At SuperValu stores, 94% of shoppers buy private brands sometimes and 20% of them always do, Sam Mayberry, the retailer's VP of private brands, told the Trib. Because of that, SuperValu makes sure to provide "quality, healthful products that fit into their individual budgets," he added.

Last year, traditional grocery retailers saw private labels make up 20.6% of sales, according to Chicago consulting group SymphonyIRI, the Tribune notes. That’s up from 18% in 2005. Store brands are also on the rise globally, expected to double by 2015 according to a recent report by Rabobank.


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June 21, 2011 03:01 AM #

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