GfK: Slow Economic Recovery Underscores Continued Store Brand Growth

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April 6, 2010

As consumers continue to struggle economically the appeal of store brands is stronger than ever and may even be intensifying, according to a study conducted by GfK Custom Research North America for the Private Label Manufacturers Association (PLMA).

American consumers are at odds with recent reports that the economy has improved. In fact, eight in ten supermarket shoppers see no improvement in the economy, and 40 percent believe things have gotten worse while another 42 percent said things have stayed the same, according to the national study.

As a result, the research predicts that the recent surge in store brands sales is likely to continue. When asked how important economic conditions were in deciding to buy a supermarket store brand, four in ten said it was very important. Sixty percent of consumers said they plan on buying more store brands as they try to stretch food dollars further.

Other key store brands research findings:

• More than half of respondents said they are more aware of store brand products now than they were a year ago.
• 57 percent saying they buy private label products frequently, up from 55 percent a year ago.
• 43 percent of shoppers report they have recently forsaken a familiar national brand for a store brand counterpart, up from 35 percent in June 2009.
• 97 percent of those who switched compared store brands favorably to their previous national brand choices in the same categories. About half said that their store brand selections compare "very favorably," up from 25 percent in the June 2009 study.

Findings of the study, titled "Recession, Recovery and Store Brands," are based on a poll conducted in February of nearly 800 primary household grocery shoppers.

Read These Related Articles:

• Store Brands Tally Historic Market Share Gains
• Ninety-one Percent of Shoppers Will Keep Buying Store Brands After the Recession Ends
• Consumers See Little Quality Difference Between Store Brands and National Brands
• PLMA Live: Aldi's Strategy for Growth
• Store Brands Drive Differentiation and Profit

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