Walmart, ALDI Continue Private Label Dominance
Here’s one testament to the growth of store brands in the recent operating environment: New research shows that all U.S. households bought a private label grocery product in the past 12 months. That’s a key, if not jaw-dropping, takeaway from the Private Label Trends Tracker published by Numerator.
When it comes to unit sales, private label products account for 23.7% of the grocery sector, the Chicago-based data and tech company found. That market share makes it one of the largest store brand segments, behind office supplies (38.7% share of sector), home and garden (32.5%), tools and home improvement (29%) and household (26.7%).
[RELATED: Private Label Sales Hit Record Highs in First Half]
Numerator’s latest tracker spotlighted some grocery winners in this space. For example, the data showed that 80% of units sold at ALDI U.S. stores were private label products. Trader Joe’s wasn’t far behind, with a 69% private label share based on total units sold.
Other retailers with more than a quarter of their overall sales volume coming from private label products include Costco (34%), Sam’s Club (33%), H-E-B (33%), Walmart (30%), Dollar Tree (29%) and The Kroger Co. (27%). Only 3% of Amazon’s sales volume is attributable to private label, the findings indicated.
As for specific retailer brands, Kroger’s Smart Way collection led the pack in growth, with a 135% leap in sales volume. Other strong performers include Dollar Tree’s B Pure line with a 92% gain, Walgreens’ Complete Home line with a 59% increase and Dollar Tree’s Market Basket selection that notched a 54% improvement.
The nation’s leading retailer, Walmart, accordingly has a big presence in private label. According to Numerator’s report, five Walmart brands had over 50% U.S. household penetration in the past year, including Great Value (86% purchased), Equate (75%), Mainstays (70%), Marketside (69%), and Freshness Guaranteed (67%).
In addition to revealing private label leaders, Numerator’s research affirmed shoppers’ changing perceptions of store brands. Well over half (58%) of consumers believe that private label brands offer an above-average value for their price and 29% think private label brands are as good as name brands.
