Private-Label Growth in Every Channel

CSPnet.com reports that despite remarkable strides made during the past several years, private-label sales are concentrated in the hands of a relatively small number of consumers. The top 50 private-label categories, representing 17% of CPG categories, account for 69% of store brand sales. As a point of comparison, the top 50 national brands represent less than half of total dollar sales. Even heavy private brand buyers allocate just 22% of their CPG budget to store brands.

CSPnet.com recommends that retailers begin to look at a multi-tiered perspective in order to fully take advantage of the private label products on their shelves. With customers continuously looking for value and affordability, retailers who embrace private labels may make increase revenue and profitability during the economic downturn.

Private-Label Growth in Every Channel

Kmart is Coming Back to Town

This latest article in retailwire highlights how Kmart, even though down 2% in sales this quarter,
has outperformed rivals Target and Wal-Mart which are down by a higher number. One of the reasons why Kmart might be bouncing back through the recession is because it offers its customers a layaway program so they have an opportunity to save for gifts, and this program is not available at Target or Wal-Mart. Kmart is also working with hundreds of designers to run a print campaign in Vogue, Glamour, and Lucky. It will be interesting to see how the Target and Wal-Mart will react to Kmart's recent success.