Inflation Makes People Choose Private Labels Over Branded Brands

Inflation hit a four-decade high in June, prompting shoppers to buy more store brands.

Due to rising pricing and smaller sizes, inflation has helped private labels acquire customer attention and participation.

Gristedes & D'Agostino Supermarkets COO Joe Parisi told FOX Business that many larger stores have seen private label growth in recent months as purchasers attempt to save spending.

As grocery inflation continues, shoppers are seeking to private label to save money, said the head of New York City's largest grocery chain.

CVS Health told FOX Business that its 12 private labels are 20-40% cheaper than competitor brands.

According to a CVS spokeswoman, CVS Store Brand products rank first in most categories and account for under a quarter of sales.

Owned brand loyalty and omnichannel activities boost front-end momentum, the Illinois-based company said last month.

Walmart CFO Brett Briggs told investors during an April earnings call that consumers are feeling inflation pressures.

Walmart U.S. President and CEO John Furner told investors that consumers are "moving from brands to private brands" in deli, lunch meat, bacon, and dairy.

Minneapolis-based Target's private labels are booming. Target's 45+ owned brands rose 18% in 2021.

Target's Chief Growth Officer Christina Hennington said the company's brand portfolio "continues to grow faster than total sales"

Coffee Habits That Shortening Your Life

Click Here