August 2020

Drive Private Label Growth Through Effective On-Shelf Merchandising

Private label logos

Private Label Goods Can Help A Retailer Drive Traffic To The Store

Private label brands, once thought as inferior products, have substantially increased in market share over recent years. Today Private label is more influential than ever in even determining store choice of shoppers.

Some facts about private label performance:

  • $153 billion in sales for 2018 across edible and non-edible retail outlets.1
  • Private label sales are expected outgrow national brands in 2020 for the fourth straight year2
  • More than half of shoppers reported they picked a store specifically for its private brand offerings3

Private Label Is One Of the Most Profitable Categories For Retailers

Investing in private label product lines is a no brainer for retailers. In addition to being able to offer lower prices with wider margins as compared to brand names, Grocers can drive customer loyalty by offering products unique to their stores. For example, Kroger’s investment in its private label products resulted in the category making up 30% of total unit sales by early 2019. Additionally, Kroger’s flagship Simple Truth brand earned over $2.3 billion in annual sales.4

Private Label Is Set To Continue Its Growth

Private label brand growth is set to thrive even more as a result of the pandemic, as price conscious consumers flocked to stores seeking the biggest bang for their buck. During the pandemic, private label brands saw a 34% increase in sales. If this trend continues, private label sales of food and beverage products could see an increase of $10 to $12 billion in sales for the year.3

Well Executed Category Management Is The Key To Drive Private Label Growth

Millions of dollars are invested into the development and shopper marketing of private label portfolios. Improper on-shelf merchandising of these products could prove detrimental in the point-of-purchase decision making process. An important aspect of this process is ensuring that products are at the shelf edge accessible to customers.

FlexRoller Will Help Further Drive Private Label Sales For Retailers

With FlexRoller’s gravity feed roller tracks, product is automatically front faced to the shelf edge. This assists in the shopper marketing process as a well-presented category is easy to shop and stands out in the aisle. Operationally, retailers no longer have to rely on hours of manual fronting from employees throughout the day. This effect allows retailers to reallocate labor tasks to other areas of the store, boost operational efficiencies while creating a better shopping experience.

Additional In-Store And Shelf Management Systems Can Add Even More Value

Overall, Grocers can complement their private label shelf management systems by leveraging in-store merchandising strategies such as automatic fronting from FlexRoller and incorporating on-shelf communication. Custom solutions such as on-shelf cubes and shelf edge InfoStrips can communicate product information or shopper marketing messages to engage the shopper in their shopping process. As a result, products stand out on the shelf-edge and the consumer is further involved in their shopping experience. All the while, grocers can efficiently re-allocate labor requirements by reducing the need for manual fronting.

Showcase Your Private Label Brands On The Shelf With Bruegmann Solutions

Bruegmann boasts several market-driven solutions that can enhance the on-shelf presence of your Private Label brands. From signage to fronting solutions, Bruegmann has the capabilities and expertise to provide custom solutions to best fit your in-store merchandising strategies.