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Store Brands Sales Reached $88.5 Billion in 2010

Store brand sales in 2010 increased by nearly 2 percent in total outlets—U.S. supermarkets, drug stores and mass merchandisers
The Shelby Report Center Store News
Courtsey of PLMA

Store brand sales in 2010 increased by nearly 2 percent in total outlets—U.S. supermarkets, drug stores and mass merchandisers (including Walmart)—while dollar share advanced by almost half a point to a new record level. Overall, sales were $88.5 billion, another all-time high, according to the Private Label Manufacturers Association’s (PLMA) 2011 Private Label Yearbook. The yearbook tracks private label sales and market share trends based on data from The Nielsen Co.

Store brands capped a decade of powerful growth by posting sales increases across all three of the major retail channels in 2010 and pushing dollar market share to new all-time highs in supermarkets, drug stores and total outlets.

As shoppers’ economic concerns eased somewhat in the wake of the recession, some industry observers predicted that store brands would give up their recent gains, or even decline as the economy rebounded, but store brands stood strong.

Sales of store brands saw gains of more than 2 percent in U.S. supermarkets and nearly 5 percent in drug chains. Over the past decade, annual sales of private label products have increased by 40 percent in supermarkets and by 96 percent in drug stores.

PLMA estimates that an additional $15 to $20 billion in private label sales in channels that are not reporting to the Nielsen databases, such as warehouse clubs, limited assortment stores, convenience stores and dollar stores, would likely have produced a grand total exceeding $100 billion for 2010.

In supermarkets, store brands sales increased by $1.2 billion; in drug stores, store brands dollar sales increased by $300 million.

Looking at total outlets, private label was up $1.5 billion while national brands were down $4.6 billion, a difference of $6.1 billion in sales revenue, according to PLMA.

Based on the latest shopper study conducted for PLMA by GfK/Roper revealed, U.S. consumers are giving strong signs they intend to stick with store brands.

A third of those polled reported that they are buying more store brands now compared to a year ago and over half describe themselves as frequent store brand shoppers. Half again said that they are more aware of store brands today than they were a year ago, and fully eight out of 10 believe that store brand products they buy are either equal to or better than national brands.

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