The Phenomenon 2024
The 'Phenomenon' Continues
New formats and platforms, store expansion and redesign, merchandising and promotional strategies. Wherever ambitious retailers venture these days, store brands are an essential part of the journey and a key element for success. Store brands travel well, offering retailers points of differentiation, competitive advantage, enhanced consumer loyalty, an agile response to changing shopper needs, effective SKU management, and profitable ROI. As we said last year, they are a "phenomenon."
Record Sales & Shares; Growth Across the Store
Whatever retailers are doing with their store brands, consumers approve. Over the past decade, the products have been CPG's hottest sector. In the last four years, annual sales of store brands have increased 34%. Total sales in 2023 were $236 billion, an increase of $10 billion over the prior year and an all-time high. Dollar and unit shares also reached record highs. Among food and nonfood departments tracked by Circana, seven experienced store brand sales growth. Leading were Beauty (up 11%), General Food (10%), Beverages (9%) and Home Care (9%). Next were Frozen (plus 4%), General Merchandise (4%) and Refrigerated (2%).
Store Brands are Everywhere
Store brands are proven omnichannel players and pervasive across nearly all categories. During 2023, among the 179 food categories Circana measures, store brand sales were recorded in 175, or 98%, while in 138 nonfood categories sales were in 132, or 96%. Consumer trial is store brands' best friend. Majorities of shoppers who opt for store brands in categories where a national brand had been their previous choice stay with the store brand. Media attention for store brands has been widespread and complimentary. Analysts describe them as valuable corporate assets. For savvy retailers and discerning consumers alike, store brands are clearly the smarter choice.