Private-Label Brands an Opportunity for Retailers Amid Inflation: EMarketer
A bright spot in Target’s challenged Q1 was its $30 billion private-label brand portfolio, eMarketer emailed Thursday, saying private label brands are giving retailers an opportunity to gain value-oriented customers at a time when they're squeezed by rising prices. It…
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noted Target’s exclusive brands grew faster than its total sales in Q1 and BJ Wholesale’s private-label penetration rose to 24% in the quarter. The top reasons consumers cited in a January survey for switching to a private-label brand were better value (89.7%), assortment option (52%), deal or membership awards offered with purchase (47.9%) and a national brand wasn’t available (41.1%), it said. Retailers such as Walmart don’t have the same agility “because they can’t simply replace branded products with private-label items without irritating consumers,” eMarketer said, though Walmart does have the onn.-brand Roku TV line. “That puts the onus on the retailer to optimize its product mix or risk having excess inventory (which, in the case of Walmart in Q1, also stemmed from items arriving late due to supply chain issues)," eMarketer said.