CHICAGO — In contrast to strong share gains in 2009, store-brand share performance has been relatively flat over the past year, according to SymphonyIRI Group.
Store brands account for 18.3% of CPG dollar sales and 23.1% of unit sales, according to SymphonyIRI's new Times & Trends report .
While dollar and unit share has increased 1.9-points and 1.5-points versus 2007, they are nearly flat vs. a year ago (0.2 points in both dollar and unit sales), according to all-outlet sales for the 52 weeks ending April 18, 2010, vs. the same period the prior year.
To boost share, retailers should support store-brand initiatives with integrated and complementary promotional and merchandising programs that raise awareness among prospects seeking low-cost in-category alternatives, according to the report. Among other findings:
• Store-brand share growth is strongest in dollar and convenience store channels, driven primarily by increasing store-brand assortment.
• The recession encouraged many shoppers to try store brands for the first time, and a significant number of these shoppers continue to purchase them even as the economy improves. Manufacturers have fought back, however, by identifying and exploiting product and price gaps, adding new creativity to merchandising and promotion strategies, and exploring new distribution approaches.
• Some retailers have attempted to improve their bottom line by eliminating some relatively low-margin national-brand products from the shelf. This resulted in shoppers shifting purchases of those products to other retailers.
"Removing national brands from the shelf may result in increasing store-brand purchases as a percent of total purchases, but may also result in losing the shopper to competitive retailers," the report stated.
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