As national brands continue to struggle with lower growth year to year in supermarkets, drug chains and mass merchandisers, store brands sales in all the major retail channels continue their upwards trend, setting new records across the board for annual revenue.
When 2014 came to a close, store brands had accounted for nearly three billion dollars in incremental sales overall, an increase of +2.5% over the previous year and more than twice the percentage gain that was recorded by national brands.
Total sales of private label in the U.S. were $115.3 billion according to the 2015 Private Label Yearbook published by the Private Label Manufacturers Association (PLMA). As a result, store brand dollar share moved up across all outlets combined – consisting of supermarkets, drug chains, mass merchandisers, and the club and dollar store channels.
Over a three-year period, store brands sales across the combined retail outlets have increased by $5.5 billion, moving store brand dollar market share from 17.3% to 17.7%. The run-ups are much the same in the individual channels. Over that period, the annual sales volumes for store brands have risen by $2.5 billion in supermarkets and risen by $200 million in drug chains.
The PLMA Yearbook utilizes data provided by The Nielsen Company for the 52 weeks ending December 27, 2014. The annual compilation has become the benchmarking standard for retailers and suppliers, where Nielsen sales and market shares statistics are reported for more than 700 product categories. Ongoing market basket research consistently reveals that shoppers can save about one-third on basic grocery and household items in a typical supermarket by choosing store brands over national brands.
Last year, consumers who reached for the store brand version of their favorite food and non-food grocery products rather than the national brand enjoyed an estimated $27 billion in savings, according to PLMA. The Private Label Manufacturers Association is the industry trade association devoted exclusively to store brands. Founded in 1979, PLMA today represents 3,400 companies who are involved in the manufacture and distribution of store brand products, including food, beverages, snacks, health and beauty aids, over-the-counter drugs, household supplies and general merchandise.