Information Resources Inc. (IRI) reports that supermarkets have been increasing the amount of own-label product on their shelves -- during the fourth quarter of 2001 and the first two quarters of 2002, the number of private label SKUs in stores has risen an average of five percent, while manufacturer-brand items are up an average of just 1.6 percent.
While it seems clear that this increase has been designed to cater to cost-conscious consumers in a tough economy, the sales figures cited by IRI indicate that the strategy isn’t working: “unit sales of Private Label products (as well as manufacturer brands) within supermarkets have declined over the same time period.”
While it seems clear that this increase has been designed to cater to cost-conscious consumers in a tough economy, the sales figures cited by IRI indicate that the strategy isn’t working: “unit sales of Private Label products (as well as manufacturer brands) within supermarkets have declined over the same time period.”
- KC's View:
- Meaning that at least during this economic slowdown, people aren’t buying differently. They’re just buying less.
