Private Label is Big Today and will be Even Bigger Tomorrow
Michael D. Sleeper, President/CEO, Imperial Distributors, Inc.
A lot has been written and discussed about the success of private label. But until you’ve attended a highly focused convention of the PLMA or Topco’s Annual Meeting, you can’t appreciate the enormity of its success.
Not since attending FMI’s conventions in the 60s, have I experienced the power and vitality of an industry so confident in its future. Besides pricing, store brands are taking an upfront position in product quality and packaging and even making a big mark in product innovation.
The buoyancy of private label’s sales growth extends beyond the numbers themselves--as impressive as they are. During these difficult economic times, private label is increasing at double digit rates while most national brands are even or down vs. last year.
There is also the growth of related organizations. Topco has blossomed as a powerful retailer-owned cooperative with 54 member companies and total store revenues of $90 billion, including recently joined Winn-Dixie and United Supermarkets.
I got the full impact attending the Topco Annual Membership Conference, held Feb. 25, 26 and 27th in Palm Beach, Florida.
The panel discussions provided by retailers, were both informative and inspiring. They illustrated in a vivid way, the creative energy of today’s retailers. I couldn’t help admiring the skill and enterprise at work as retailers like Stater Bros. Markets, Brookshire Grocery Co., United Supermarkets and Meijer, Inc. discussed successful ways to compete in today’s economic environment. And a unique nutritional scoring system NuVal was presented and implemented by two leading Topco members Price Chopper and HiVee.
There’s no doubt that house brands were already on the rise before the current economic crisis. But today, private label has more distinctive high quality products than ever before and is ideally positioned to capture more business for decades to come.
Health and Beauty Care products include nearly 1,200 SKU’s which are an easy and smart choice for consumers. General Merchandise categories offer lifestyle selections which include bakeware and cookware, batteries and bulbs, stationary and pet supplies. Imperial stocks 1,400 Topco SKU’s in HBC and GM with margins for our customers which exceed national brands by 10 to 25 percent.
Private label has been big business in the past and promises to be EVEN BIGGER in the years to come.
Private Label is Big Today and will be Even Bigger Tomorrow