September 21/Chicago/Business Wire -- The economy is showing glimmers of stabilizing, energy prices have receded, and food prices are increasing at a much slower rate, but the growth of private brands continues, creating strong opportunities for retailers and serving as a cautionary tale for manufacturers, according to the latest "IRI Times & Trends Report: Game-Changing Economy Taking Private Label to New Heights." The report finds private label unit share has grown 1.2 points to 22.8%, and dollar share has grown 0.7 points to 17.6% across all outlets in the past 12 months. Despite this success, two questions are emerging as the economy continues to improve: will shoppers continue to purchase private brands in ever larger quantities, and how will name-brand manufacturers respond?
"The popularity of private brands will continue as a result of several factors," says IRI Consulting and Innovation president Thom Blischok. "These products offer a very strong value proposition based on quality as well as price. In addition, shoppers will continue their frugal shopping patterns long after the recession ends. And, retailers' increasingly sophisticated private brand strategies will attract a larger and more diverse shopper base."