Private Label Buyer

PLMA Study Shows Pricing Margin Of 30 Percent For Private Label

February 11, 2013

A new comparison released by the Private Label Manufacturers Association shows that consumers can save 30 percent or more by switching from national brands to private label products.

The analysis looked at 35 grocery items over a four-week period at a conventional supermarket, including food and nonfood items.

The results showed that consumers who went with private label products could save an average of $39.49, or 30.1 percent, off their bill. For each category, the leading national brand was compared with a similar private label product, and prices were adjusted to account for discounts, coupons and promotions.

The study was conducted at a single retailer in the Northeast. Cost savings were as high as 62 percent for white sandwich bread, 48 percent for macaroni and cheese, and 47 percent for hot chocolate on the food side. On the nonfood side the biggest differences showed in sinus sprays (53 percent less), body lotion (36 percent) and cold medicine (30 percent).