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Conference Coverage: Level of Retail Concentration Directly Impacts PL Sales

September 27, 2011
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Private label sales do best in countries with high level of retailer concentration, explained John Stanton, professor of food marketing at Philadelphia-based Saint Joseph’s University, during the Private Brands Summit in Chicago Monday.

 

Stanton examined a number of factors to determine which was best at predicting private label sales levels. Retail concentration was the most accurate measurement, he said.

 

Private label manufacturers should be looking beyond the Untied States to sales opportunities in other countries where private label is only now starting to be a factor in retail markets, he advised.

 

“Private brands are quite different in each country. In some places it is not present at all and in others it dominates the shelves,” he says. “Private label manufacturers must look at the world the way brand manufacturers look at the world, make every country your focus, not just your own.”

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