Price Study: PL Saves Shoppers Upwards of 33 Percent

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April 19, 2011

A new study of comparative prices on a wide range of everyday supermarket purchases revealed that on average shoppers can save 33.3 percent off their weekly grocery bill.

The research, conducted by the Private Label Manufacturers Association, tracked pricing for 40 essential household items and pantry staples at a conventional supermarket. Included in the survey were spring cleaning items such as glass cleaner, paper towels and pine oil disinfectant, as well as two dozen pantry staples such as corn flakes, pasta sauce and carbonated beverages, and personal necessities including mouthwash and facial tissue.

The study results indicate that consumers who choose the store brands on the list rather than the national brand could save $42.30 (a savings of 33.3 percent) on average on their total market basket. When buying the national brands the 40-item purchase totaled $127.03 on average over six separate trips, while the store’s brands totaled $84.73 (see complete price chart below).

The survey took place over a six-week period in a suburban supermarket located in the northeast. For every category in the study, a leading national brand product was compared to a similar store brand product and prices were adjusted to account for all known discounts, coupons and promotions available for each of the six shopping visits in the study, according to PLMA.

Cost savings on food items ranged as high as 46.8 percent on carbonated beverages to 40 percent on pasta sauce. Non-foods category savings were even greater, led by store brand aspirin, which cost 60.6 percent less than the national brand and pine-oil cleaner, which was 57.3 percent less for the store brand.

Data from The Nielsen Company show that annual sales of private label products grew by more than $18 billion over the most recent 5-year period and unit market share for private label in U.S. supermarkets is now 23.5 percent.

Read These Related Articles:

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• Loyalty to Nationally Advertised Brands Declines
• Nielsen: Global Private Label Phenomenon is Here to Stay
• Study: Consumers Name Aldi Grocery Price Leader
• New Consumer Study Says Frugal is Cool

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