Grocery stores boost sales of house brands with flashier packaging, more high ...
20.05.12
Once stigmatized as a second-rate alternative, store brands are taking on their name-brand counterparts with flashier packaging and a growing number of organic, all-natural and higher-end products.
The push is part of a broader expansion of store brands into every corner of the supermarket; shoppers can now find cheaper versions of Greek yogurt, organic frozen pizzas, gelato and even specialty chocolates.
At Target, shopper Charles Rawls said he didn't even realize that Archer Farms was the big-box retailer's in-house brand when he first started buying the snacks a few years ago. Rawls tried them only because he noticed they cost less.
"The packaging is very colorful, and there are nice big pictures of the food," said Rawls.
The transformation of store brands - aka generics, house brands, and private-label brands - is being driven largely by economic conditions.
To start, supermarkets are being pressured by rising fuel and commodity prices, which have forced them to pay more to keep shelves stocked with name brand products. But grocery chains fear passing on those higher costs could send shoppers running.
Source: Fayetteville Observer