He also said that his preconceived notion that private label foods may be of inferior quality has been challenged.
“I started to see that store brand, private label is never inferior,” she said.
Consumer perceptions of private-label foods have improved significantly since the last time interest in store-bought products increased, according to CoBank, which was during the 2008 recession.
This means that the increase in the share of private label products in the consumer basket is likely to have more staying power in this regard, the report said.
Empire Co. Ltd., the company behind Sobeys, FreshCo, Safeway and other stores, said in its 2024 annual report that it plans to continue growing and improving its portfolio of grocery products.
In its 2023 annual report, Loblaw noted that customers' increased focus on value “benefited the Company's sales due to its strengths in private label products, discount banners, and personalized promotions.”
The company even introduced a new discount grocery banner this year under its No Name brand.
Consumers often not only get better margins on private label products but also see it as a kind of “loyalty program” that can keep customers coming back, Chapman said.
He thinks retailers will work hard to keep private label sales strong with new products, marketing, promotions and shelf space.
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