Does a Strong Private Label Business Help Retailer Loyalty?
The Progressive Grocer Annual Report (April 2003) asked grocery retail executives about their number one subject of most concern and focus. The largest number answered that they were most concerned about their Private Label business. This concern took precedence over e-commerce, technology, and even category management. The question is – does a retailer’s Private Label really help draw consumers and eventually make them retailer loyal? As food retailers continue to put an emphasis on Private Label product and image development, it is import to understand exactly how shoppers buy and feel about these offerings; along with understanding if the past positioning of the store brand, as a lower priced alternative, is still valid. In a recent Homescan panel survey, we gathered consumers’ opinions about their primary grocery store loyalty, and overlayed the actual sales and shopping behavior to further evaluate if there is a correlation between a store’s Private Label business and its shoppers
