Supervalue Harvest Organic imageGone are the days when one store satisfied all family and household needs. Today, shoppers are less loyal to the stores they shop in and many shop in several different formats to satisfy their varied and fickle needs. Grocery retailers understand this trend full well. In fact, 74 percent of them feel consumers will be even less store loyal in 2009 than they were in 2008, according to a Food Marketing Institute study titled “The Food Retailing Industry Speaks 2009.”
The survey found that retailers are heavily focused on boosting customer service and the quality of their store brands to build customer loyalty –– and profit –– since retail gross margins are higher on store-branded products (35 percent) versus comparable nationally advertised brands (25.9 percent).

“As competition increases, store brands have become more important than ever in providing retailers a unique point of difference and the ability to drive overall shopper satisfaction, store loyalty and profitability, “ according to the report.

And store brands are the rule, not the exception: nearly all grocers (97.5 percent) carry store brands, with 75.9 percent carrying multiple tiers of products, up from 64.6 percent in 2008, according to the FMI report.