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Daymon Releases New ‘Winning in Center Store’ Report

Daymon logo center store report

Daymon has released its top-level findings in its recent “Winning in Center Store” report. Daymon’s is a solution provider that influences all aspects of private brand development, from strategy to execution to consumer engagement.

Center store is arguably the backbone of brick and mortar and a critical area of focus as retailers continue to navigate challenges like the rise of discounters, e-commerce, corporate consolidation and unprecedented bankruptcies. Center store departments have a 77 percent share of the total store, whereas fresh contributes to just 23 percent of total store sales. Using private brands to lead in center store will provide the competitive edge needed to ensure long-term sustainable growth in an increasingly dynamic and complex retail environment.

 

Private brand curation, innovation drive center store success

With 98 percent of national brand assortment the same across retailers, private brand innovation is vital to success and growth. This is especially true in center store where private brands are growing twice as fast as national brands and have a higher penetration than in fresh (19.1 percent vs. 18.1 percent).

Best-in-class retailers launch over three times more new private brand products than average and shoppers have taken notice, with 73 percent of consumers who shop at these retailers saying they always have new and interesting products to try and buy. In turn, these best-in-class retailers are rewarded with stronger share and shopper loyalty.

 

Private brands must be treated as true consumer brands

Consumers want brands and products that are unique and tailored to their diverse needs. With more choices than ever, private brands must deliver to remain relevant, especially in center store where competition is fierce both within and between channels. To build and maintain a successful program, retailers need to treat private brands like true consumer brands by delivering value beyond price, offering exceptional quality and driving in-store engagement to champion private brands with shoppers.  

 

Center store space is ripe for reinvention

While the average size of a supermarket in the U.S. is 45,000 s.f., center store footage is shrinking as most retailers downsize space in favor of expanding perimeter departments. At the same time, consumer shopping patterns are changing, but the traditional store layout has struggled to keep pace. In order to address these compounding factors, retailers need to rethink how to optimize their center store space, prioritizing a break down of the silos between departments to drive the transformation.

To learn more about “Winning in Center Store” and private brands, download the report at daymon.com/publications.

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