May Store Brand Dollar and Unit Sales Decline

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June 8, 2010

For the second consecutive four-week period, store brand unit sales declined, while store brand dollar sales declined for the first time after four straight periods of growth.

Store brand dollar sales fell 1.4 percent and unit sales declined 1.5 percent, according to Nielsen data.

Dollar sales of prepackaged, UPC-coded store brands were $38 billion during the period, compared to $38.6 billion in the same year-ago period.

Total unit sales for the four weeks ended May 15 were 13.67 billion, down from 13.83 billion during the equivalent four-week period in 2009. Only three categories posted unit sales growth for the period –– alcohol beverages, fresh produce and deli.

Store brand unit market share fell to 21.7 percent, 0.1 percent less than 21.8 percent posted in the same year-ago period.

In the four-week period ended April 17, store brand dollar sales rose 1.1 percent, while store brand unit sales declined 2.3 percent.

Tom Pirovano, director of industry insights for Nielsen Co., described the April unit share decline as a “correction” rather than a long-term trend during a recent presentation at the Citi Investment Research Food & Drug Conference.

Year-end 2009 market share for store brands was 23 percent. Pirovano said he predicts store brand sales [this year] will settle above pre-recession levels (slightly under 22 percent), and grow from there, according to a Supermarket News report.

Read These Related Articles:

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• Store Brands Tally Historic Market Share Gains
• Nielsen: Retailers Should Tread Cautiously When Cutting SKUs
• Store Brands Market Share Gains Level, But Likely to Hold
• Walmart Canada Unveils Revamped and Reformulated Great Value Brand

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