News

Private Label's Role in a Well-aligned Pricing Strategy

January 25, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

Continued private label expansion is one key aspect of retailers’ 2011 plans to formulate a consistent merchandising strategy and consumer experience based on quality and value, says a just released survey report. 

Expanding the array of consumers’ private label options is a strategic priority for more than 30 percent of retailers surveyed for the just-released ninth annual “Retail Horizons: Benchmarks for 2010, Forecasts for 2011” report from the National Retail Federations’ research and education arm, the NRF Foundation, and KPMG LLP, the U.S. audit, tax and advisory firm.

The number of retailers implementing nationwide pricing and markdown strategies is increasing, this year’s study indicates. The trend could point to the growing role that value-based pricing plays in gaining share of wallet, the study’s authors say. Seen thus, private label can be part of a well-aligned pricing strategy based on quality and value, which, according to the survey, is retailers’ number one concern today.

“The economic turbulence over the past year created a renewed cash consciousness on the part of shoppers and retailers alike,” the report states. “While retailers used the period to slough off waste, shoppers made it clear that value for money was top of mind. Those sentiments are likely to persist even as the economy regains traction. As retailers respond, merchandising and pricing strategies will play an increasingly critical role.”

The challenge for retailers will be balancing the demand for value and keeping prices down, the report says. While sales and price cutting appeal to budget-minded consumers, the industry must be mindful of the risk of promotional fatigue as well. Given the ongoing climate of uncertainty, more predictable, value-based pricing may be more reassuring for consumers, the report’s authors conclude.

This year’s edition of Retail Horizons includes responses from 135 North American retail companies and more than 318 individuals responding on their behalf. The report documents retailers’ key business priorities and plans, and tracks established and emerging retail trends.

For more information on the report, please go to
http://www.nrffoundation.com/

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

August 2014 New Food Products

This month’s new food products are organic coffee, hatch green chili tzatziki, cultured soy, kernel cooking oils, snack seasoning, thin Swiss cheese, tea and lemonade blend, crispy fish shapes, mole rojo braising sauce, sausage & cheese pita pocket, and chicken club pizza.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB August 2014 cover

August 2014

The August 2014 issue of Private Label Buyer includes articles on non-food grocery items, as well as category insights on store brand spreads, healthcare, and personal care. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

PLB Marketplace

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px