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[Karin's Take] Don’t be turned off by this article’s references to supermarkets and grocers. The target audience of the article is grocery, but the principles of private labeling and why it’s working apply to any specialty retailer who sells food, and specifically private label items. ##

By Janet Groeber | Source: STORES Magazine

Gone are the lackluster generics of yore, when a retailer would knock off a leading national brand right down to the packaging and cut the price by 20 percent. Mainstream supermarkets – pinched on price by Wal-Mart on the low end and on exotic/organic offerings by the likes of Whole Foods Market on the high end, are responding with comprehensive programs to reach shoppers of all stripes.

Supermarket brands now sport slick and sleek packaging that is becoming harder for customers to peg as private label.

Two words – increased margins – make it easy to understand why private label is gaining traction. Retailers that source new products to their specifications can usually eliminate the middleman, boosting profits.
Read the full story, trends at STORES Magazine >>