n the United States, traditional retailers have always had the upper hand in offering private labels to customers who are value conscious. However, a study by Information Resources Inc. (IRI) suggests that they are increasingly being threatened by large-scale retailers like supercentres, mass merchandisers and club stores, leading to cross-channel competition.
The report, 'Times & Trends: Private Label: The Battle for Value-Oriented Shoppers Intensifies', reveals that customers in the US spend about 16 per cent of their CPG (consumer packaged goods) budget on private labels. This share has been stable for the past two years, increasing only three-tenths of one per cent during this period.
Particularly, supercentres like Wal-Mart have intensified their activities in private label value creation and sales. Mass merchandise, club and dollar stores presently have a lower share, though it has increased over the past two years. ... more