By Caroline Scott-Thomas, 10-May-2010
Growth in private label is approaching 20 percent of dollar value in the US, according to market research organization the Nielsen Company – and it is being driven by the most affluent households.
There has been some disagreement among analysts about whether sales of store brand, or private label, products would continue after the economy begins to recover. However, the Nielsen Company suggests that not only are private label goods holding their own, but there has also been a fundamental shift in the demographic most likely to purchase private label goods, with those households earning over $100,000 a year representing the fastest growing segment of private label sales.
In an interview for the Private Label Manufacturers Association, senior vice president for the Nielsen Company Todd Hale said: "More affluent households have been driving trip growth to retailers while low income consumers, middle income households have had to pull back in a much stronger way."
Hale said that this was because more affluent households tended to be better educated, had seen their financial situations worsen and were more likely to be looking for ways to save money.
"I’m often quoted as saying that poor people need low prices but rich people love low prices," he said.
Store brands advanced to a 17.3 percent share of dollars and a 21.9 percent share of units by March 2010, Nielsen said, up 2.1 and1.9 points respectively from 2007.
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