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Supervalu Predicts Higher PL Penetration Rate

July 27, 2011
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Supervalu expects to see its private label sales penetration rate increase by 1 percent a year for the next three years despite just completing a quarter where that rate remained unchanged at 19 percent, Supervalu CEO and President Craig Herkert said during an analysts conference call Tuesday.

 

“In each of the next three years, we expect PL penetration to rise by 100 basis points as we bring our value play to the forefront and highlight the quality and value of our private brand program for shoppers,” Herkert said.

 

The Eden Prairie, Minn.-based retailer announced in May that it would move to one national brand equivalent private label, Essential Everyday, doing away with its individual banner private labels. Essential Everyday is now in three categories, cereal, pastas and pasta sauces, with 140 items, Herkert said.

 

Other private label offerings launched in the first quarter were single-serve frozen pork, poultry and beef items within its Shoppers Value line, he noted.

 

“Each product is priced at $1, and they’ve done very well for us,” Herkert said. “As a result, we quickly rolled these items out to all of our traditional stores and our plan is to introduce a total of 80 new items under the Shoppers Value label this fiscal year.”

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