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04/23/2021

Private Label Sales Are Up 13.2% at Supermarkets

Consumers flocked to supermarket private labels in 2020, pushing sales up a whopping 13.2%, Progressive Grocer reported.
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Target instore

Of all units sold for the year ending December 26, 2020, 23.4% were retailers’ private labels, Private Label Manufacturers Association (PLMA) Private Label Yearbook confirmed. That figure includes total U.S. supermarkets, mass, club and dollar channels, as well as drug chains. In addition, nearly one in every five dollars spent by shoppers in all outlets was on retailers’ brands.

While that’s unchanged from previous years prior to the pandemic, sales rose 12% in 2020. That’s in line with overall shopping trends for the year, which saw consumers turn away from restaurants and eating out in favor of staying home to reduce exposure to the Covid-19 virus. For U.S. supermarkets, private label brand sales rose 13.2%, or $8.5 billion, for record sales of $27.3 billion. Manufacturers brands did even better, with sales rising 16%

Together with online purchases for pickup and delivery, shoppers spent $16.5 billion more on private labels across retailers, and $86 billion more on all brands compared to 2019.

“Analysis needs to take these anomalies of the 2020 data into account,” said PLMA President Peggy Davies. "But comparisons to pre-pandemic trends and projections notwithstanding, store brands maintained their well-established position in the marketplace, as retailers and private label manufacturers succeeded in supplying the country with critical food and essential non-food products in the face of extreme volatility. The 2020 sales figures bear that out.”

See the full story at Progressive Grocer.