"Store Brands Marketplace"
A key to retailer success
Wherever ambitious retailers venture, store brands are an essential part of the journey and a key element for success. Store brands offer retailers points of differentiation, competitive advantage, enhanced consumer loyalty, an agile response to changing shopper needs, effective SKU management and profitable ROI.
Store brands outpace national brands
In 2024, store brand dollar sales surpassed a quarter trillion dollars to $271 billion, an all-time high in annual revenue. Store brand unit sales were also a record at 67.4 billion. Dollar sales jumped 3.9% vs a gain of 1% for their branded counterparts. In unit sales the head to head disparity was similar as store brands advanced 2.3% while national brands fell 0.6%. Over the past four years, annual sales of store brands increased $51.7 billion, plus 23.6%; annual unit sales rose 1.4 billion, up 2.1%.
Departments provide a full picture of expansion
All ten food and non-food sections finished ahead of the prior year in store brand dollar sales with Refrigerated (+ 7.5%) and General Food (+4.3%) gaining the most. Unit sales leaders were Beverages and Pet Care, both +3.5%. In store brand dollar share the strongest gains were in Frozen (+0.6%), General Food (+0.5%) and General Merchandise (+0.4%).
Growth is ubiquitous
In 2024, store brands advanced across the store, racking up dollar gains in 129 of the 167 edible categories (77% of them) in which they were sold and enjoying unit sales improvement in 118 (71%). Among the 153 non-edible categories, dollars grew in 79 (52%) and units increased in 85 (56%). Majorities of shoppers who "trial" store brands in categories where a national brand had been their previous choice stay with the store brand after a "positive" experience.