Private Label Buyer

Exclusive: PL Print Promotions Drop in Early September vs. Year-Ago Levels

September 16, 2011

Nine of 12 major U.S. food retailers promoted their private labels less heavily in early September than they had in the same period last year, found an exclusive survey of retailer print ad circulars done for PLBuyer’s eReport by Chicago-based research firm Market Track.
Jacksonville, Fla.-based retailer Winn-Dixie, along with Safeway and Rite-Aid, were the only retailers to advertise more private label products in the week ended Sept. 7, 2011 than in the comparable period last year, Market Track found.  Private label ads accounted for 20.5 percent of Winn-Dixie print advertising in the week examined compared with 16.3 percent n the same week last year.  Safeway devoted 28.8 percent of its advertising to private label compared with 24.6 percent n the same period last year.
Walgreens saw the largest decrease in private label advertising for the week examined. PL ads accounted for only 5.4 percent of its ads this year compared to 20.1 percent last year. The drug store chain may be cutting private label advertising until it can complete the rollout of its new Nice! line to replace other, older private labels. It makes little business sense to tout private labels being phased out.

Market Track’s analysis reflects regional versioning and market specific differences in circulars. This is accomplished through an extensive collections process, including physically obtaining the ads from the various markets in which they are distributed. In instances where retailers send additional circulars to a limited number of markets, Market Track’s information reflects these nuances to give a view of what is happening nationally.