Nielsen: Private Label and Value Retailers Win Big in the Recession

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October 6, 2009

In a presentation on U.S. retailing and buying trends, The Nielsen Co.'s Todd Hale, senior vice president of consumer and shopper insights, offered his take on the winners and losers of the recession, with private label and value retailers taking top spots, according to a CSP report.

The growth of private label will continue, but Hales warns the current 21 percent share in the U.S. is not expected to reach the 40 percent share it commands in the U.K. He acknowledges, however, that the growth in store brand unit share over the past two years reveals a clear consumer behavioral shift.

And as many retailers post declining same-store sales due to price, value retailers are bucking the trend, Hale said. "Value retailers are driving growth," with warehouse clubs, super centers and dollar stores growing store count, according to Nielsen's mid-year 2009 figures.

Retailers who sales and store counts are growing include Kohl's department stores, drug stores Walgreens and CVS, Family Dollar, Dollar Tree and Dollar General, and Sam's Club and BJ's warehouse club stores, he said.

Kroger has also bucked the trend, posting more than a 2 percent increase in same-store sales, which Hale attributes to private label excellence, restructuring, strong marketing and new format trials.

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• Nielsen Predicts Continued Store Brands Share Gains
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• Nielsen Forecasts Long Growth Pattern in U.S. Store Brands

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