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Private Label Continues To Play A Role in Value Channel, Report Notes

December 20, 2011
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Stores such as Big Lots, Dollar General and Family Dollar are expected to continue to growwith private label playing a major role, according to a new report entitled "Value Channel Outlook: Small Stores, Big Opportunity," by independent retail research firm, myRetailPOV.

As with the growth of private labels, the increasing popularity of so-called value channel stores can be traced to shoppers looking for the best buys in a tough economy. And that trend won’t be turning around any time soon, says Sandra J. Skrovan, founder of myRetailPOV and author of the report.
 
Very often, Skrovan says in the report, Dollar General, Big Lots and Family Dollar are mixing their own private labels with national brands. “Trade and Save” offers are common, she says, and value retailers have been working to improve product quality and packaging, especially in grocery/consumables, so it is not a difficult decision for shoppers to switch from buying national brands to private label.
As an example, she said, Big Lots’ new private label Fresh Find is now in stores. Packaging is not only sleek, but labeling is educational and informative in the use of “good-for-you” icons (e.g., all natural, cholesterol free, gluten free, etc.) to rival the likes of Whole Foods..

Shifting their product mix to more private label items also can help these retailers hold down their costs, she adds.

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