Retailers Eye Private Brand Growth to Offset Price Hikes

Retailers will continue expanding their assortment of private brand products as part of an on-going effort to address cost increases across several categories, a new survey from Advantage Solutions found.

In its Manufacturer and Retailer Outlook, Spring 2023 survey, 73% of retailers said increasing private brand availability is among their top-3 strategies to offset higher prices seen from branded products. 

Retailers said they plan to expand their store brand assortments through a variety of measures over the next 12 months. These include line extensions of existing products, introducing private brands to new categories, and adding private-brand products to their health and wellness mix.

On a category-by-category basis, retailers said they will create more space for private brands in frozen food (45% of respondents), general food (41%), beverages (28%), and home care (23%).

To combat the growth of private brand products, branded product manufacturers surveyed said they will market the quality of their products while also launching product innovation. Their top tool for remaining competitive is on-shelf promotion, the survey found. 

Also of note is that only 28% of branded product suppliers as of March said they plan to take price increases over the next six months, down from 46% in December. More than one third of suppliers (35%) said they will not hike prices and 37% remain undecided.