PRIVATE EYE

With an eye on national brands' innovation, pricing and promotion efforts, retailers are strategically positioning their multi-tier private-label lines. Since company-brand profit margins are, on average, 10% higher than those realized by retailers on a national-brand item's sale, many are learning it pays to be diligent. Take, for instance, Safeway's premium, 150-product O Organics line, which fills

With an eye on national brands' innovation, pricing and promotion efforts, retailers are strategically positioning their multi-tier private-label lines.

Since company-brand profit margins are, on average, 10% higher than those realized by retailers on a national-brand item's sale, many are learning it pays to be diligent.

Take, for instance, Safeway's premium, 150-product O Organics line, which fills a space not currently occupied by any one major national brand. Sales of the

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