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Sam's Club Goes Premium PL, Will Costco Follow?

September 23, 2011
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Recent premium private label introductions from Sam’s Club signal that retailer movement to premium PL is picking up steam, imdustry experts tell PLBuyer’s eReport.

 

Bentonville, Ark.-based Sam’s Club recently has rolled out three new premium-tier private label brands, Simply Right, Artisan Fresh and Daily Chef. Tuesday, the retailer also unveiled its new premium Simply Care baby care brand, an extension of its Simply Right health-and-wellness brand.

 

“Premium private label really seems to be taking hold. I'm seeing more of it every day. I think that Sam’s having a premium quality product as an accompaniment to the traditional PL is a good idea because it allows them to extend their reach and go after the Costco customer. Of course there's always a concern about alienating existing customers, but as long as they keep the traditional product as well, they should be fine,” explains Paula Rosenblum, managing partner at Miami-based Retail Systems Research (RSR Research).

 

“Other retailers like Safeway Select, O Organics, Eating Right and Signature Café have been doing this. It is certainly the trend. It will be interesting to see if there is any response from Costco, which historically has just used Kirkland,” says Neil Stern, Neil Stern, senior partner with the Chicago, Ill.-based research firm McMillan Doolittle LLP.

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