She also said her pre-existing notion that private-label food might be lower quality has been challenged.
“I started to kind of recognize that the store brand, private label isn’t necessarily less quality,” she said.
Consumers’ perceptions of private-label foods have improved considerably since the last time interest in store brands surged, according to CoBank, which was around the time of the 2008 recession.
This means the increased share of private-label products in shoppers’ baskets is likely to have more staying power this time around, the report said.Empire Co. Ltd., the company behind Sobeys, FreshCo, Safeway and other grocers, said in its 2024 annual report that it plans to continue growing and enhancing its portfolio of store brands.
In its 2023 annual report, Loblaw noted that customers’ increased focus on value “benefited the Company’s sales due to its strength in private label products, discount banners, and personalized promotions.”
The company even launched a new discount grocery banner this year under its No Name brand.
Grocers not only often get a better margin on private-label products but also see them as a sort of “loyalty program” that can keep shoppers coming back, said Chapman.
He thinks retailers will work hard to keep private-label sales strong through new products, marketing, promotions and shelf space.
