Numerator has released a new study on retailers and their private label brands. It found Walmart owns four of the top five private label brands in terms of household penetration. Meanwhile, Aldi, Target and Amazon have the fastest-growing private label brands.
Numerator’s study examined the top five private label brands and their penetration rate.
Walmart’s Great Value items were purchased by 72.7% of U.S. consumers, followed by Walmart’s Equate brand (51% penetration), Marketside (44.2% penetration) and Freshness Guaranteed (40% penetration). Dollar Tree’s label, with 32.5% household penetration, rounded out the top five.
Overall, Walmart’s store brands accounted for 23.3% of the retailer’s sales. Among warehouse clubs, private label products make up 33.5% of Costco’s sales and Sam’s Club had a 30% sales rate. Among other retailer’s private label Wegman’s has a 49.4% private label penetration and H.E.B., 26.9%.
Amazon’s private label brands were found to do well in consumer electronics and home goods, but when it came to grocery, household and health and beauty products, its store brands only have a 3% share.
Other retailers with a large portion of their overall products as private label brands have found great success. For instance, more than 77% of Aldi’s sales are for private label items, followed by Trader Joe’s at 59.4%.
Aldi’s private label brands grew by 2.3 points in household penetration from the second quarter last year to the same period in 2022, the most of any retailer. Target’s Favorite Day label penetration increased 2.2 points, with Amazon Basics up 1.7 points.
In other areas Numerator found that low-income consumers are just as likely to purchase private label items as other income groups. Low-income (17.1%), middle-income (17.9%) and high-income (17.2%) shoppers all have roughly the same private label grocery share, the firm found. In addition, 56.9% of high-income buyers held a favorable view of private label products while 52.5% of low-income shoppers did.