Consumers choose Brand X
Posted
Aug 01 2008, 12:09 PM
by
Minyanville
Rating:
Major retailers say sales of house brand items are climbing as shoppers look to save a few pennies in a downbeat economy.
Wal-Mart, Safeway and Kroger say their store brands have traditionally sold well and sales have recently increased.
The Food Marketing Institute, a trade group in Arlington, Virginia, says about 60% of shoppers say they now buy some store brands.
But these aren't the generic brands you remember from your school days. A stark gray can labeled "Peas" or "Asparagus" -- a tacit warning that the contents were bland at best and sometimes nearly impossible to eat -- have been replaced with stylish labels and better quality.
Kroger offers "Private Selection." Safeway offers "O Organics." Wal-Mart rolled out "All Natural".
Do Brand X disposable diapers beat Pampers? Probably not, but an increasing number of shoppers appear willing to experiment with the cheaper product.
Decreasing property values, rising unemployment and higher energy prices limit the ability of many Americans to spend. The economy is contracting, but technically it's not in a recession defined as two consecutive quarters of negative growth. But strict definition has little to do with perception and many people feel pinched.
That probably explains the increased interest in store brands. But it's unlikely that the shift is permanent. When the economy rebounds, you can bet that discretionary spending will rise.
Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Scott Reeves. For related analysis from Minyanville, see also:
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