PLMA e-Scanner - April 2021

Government restrictions from the pandemic resulted in both shows going online in 2020. In December of 2020, the International show was held online, while PLMA hosted Private Label Week the first week of February 2021. The U.S. show is still open for business until the end of the month.

Illinois governor J.B. Pritzker has expressed confidence that live trade shows, with some restrictions, could happen as early as this summer. The RAI in Amsterdam also has live events planned for the fall. PLMA is working on plans to make the shows as safe as possible for all and to follow all government regulations.

In all retail outlets, private label dollar volume increased by 11.6% and private label unit volume gained 7.2%. Total store brands dollar volume reached a record of $158.8 billion, while units sold hit 52.5 billion, another record. Private label market share stayed constant with 2019 with dollar share at 19.5% and 23.4% for units.

Private label dollar sales in supermarkets increased by $8.5 billion, or 13.2%. In the mass channel, sales grew 11.7%, or $8.1 billion. In supermarkets, units sold increased by 7.1% or 1.8 billion total units. The mass channel also had growth, with units also moving up by 1.8 billion or over 8%. But the drug store channel continued to struggle. Private label dollar sales dipped by $100 million, while private label units also declined by 100 million, or 6.2%.
 

While no one expects 2021 to repeat the groundbreaking sales of the past year, the numbers could also reflect the growth of new customers who have tried private label for the first time during the pandemic and who may continue buying store brands now that they have discovered their benefits. PLMA members receive full Yearbook data. To become a member click here.

Target’s Chief Growth Officer Christina Hennington was recently quoted as saying the retailer’s private brands accounted for one-third of Target’s sales. Four store brands have reached $2 billion in sales. They are Cat & Jack, Up & Up, Threshold and Good & Gather.

“Own brands are vital to the success of our business,” Hennington said, adding that that Target customers seek out their store brands and are loyal to them.

Target even upped the ante recently by announcing the introduction of a major new food line. Slated to hit store shelves on April 5, Favorite Day is a line of 700 products that will focus on snacking items like cupcakes, lava cakes, ice cream, and other sweet and salty snacks. Target is also introducing a crafting line called Mondo Llama. It will consist of 400 arts and crafts products including paint sets, drawing kits, and other craft products.

Walmart plans to work with manufacturers and others through a program called "American Lighthouses." The program’s goal is to reduce barriers to U.S. production and help return more manufacturing to the U.S.