Store Brands Tally Historic Market Share Gains

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April 6, 2010

Sales of store brands topped $86.4, up $3.1 billion, across the major U.S. retail channels in 2009, according to The Nielsen Company.

With 2009 gains, store brands now represent 21.8 percent of total dollar volume while comprising only 10 percent of total items in stores. This contrasts dramatically with economy national brands that made up 21.3 percent of dollar sales in 2009, while comprising 29.7 percent of items in stores.

Store brands unit share increased 25.3 percent, from 16.6 percent to 20.8 percent, and dollar share increased 28.2 percent, rising from 17 percent to 21.8 percent in the 52 weeks ended December 26, 2009 compared to the prior 52 weeks, according to Nielsen data.

In supermarkets alone, where market share in units reached an historic high of 23.7 percent, store brands growth outpaced national brands by a spread of 8 basis points, and dollar market share also set a new record at 18 percent, according to Nielsen data prepared for the Private Label Manufacturers Association (PLMA).

Store brands accounted for 90 percent of the sales growth in supermarkets, adding $1.5 billion in incremental sales (up 2.9 percent), while national brand sales were virtually flat for the year at (up 0.1 percent), according to Nielsen.

Store brand unit share performance has been stronger than dollar share on a monthly basis since rising to 20.75 percent from 19.75 percent in May 2008, according to Nielsen. There was a second spike in late January-early February 2009 during the depths of the recession when store brand unit share increased to 22 percent, up from 21.5 percent. Although unit share dipped below 21.5 percent in May 2009, it rebounded mid-June and continues posting monthly gains, according to Nielsen.

Read These Related Articles:

• GfK: Slow Economic Recovery Underscores Continued Store Brand Growth
• Ninety-one Percent of Shoppers Will Keep Buying Store Brands After the Recession Ends
• PLMA Live: Nielsen V.P. Says Store Brands Will Remain Strong After the Recession
• Store Brands Drive Differentiation and Profit
• PLMA Live: How Retailers Can Build Their Brands

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